BILL NUMBER: SB 2175 CHAPTERED 09/29/00 CHAPTER 854 FILED WITH SECRETARY OF STATE SEPTEMBER 29, 2000 APPROVED BY GOVERNOR SEPTEMBER 28, 2000 PASSED THE SENATE AUGUST 31, 2000 PASSED THE ASSEMBLY AUGUST 30, 2000 AMENDED IN ASSEMBLY AUGUST 29, 2000 AMENDED IN ASSEMBLY AUGUST 24, 2000 AMENDED IN ASSEMBLY AUGUST 18, 2000 AMENDED IN SENATE MAY 2, 2000 INTRODUCED BY Senator Burton FEBRUARY 25, 2000 An act to amend Sections 18804 and 18808 of the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGEST SB 2175, Burton. California Peace Officer Memorial Foundation: contributions: income tax return. Under existing law regulating the administration of personal income taxes and bank and corporation taxes, individual taxpayers are allowed to contribute amounts in excess of their tax liability for the support of specified funds or accounts, including, among others, the California Firefighters' Memorial Fund and the California Peace Officer Memorial Foundation. Existing law provides for the repeal of the contribution provisions for these funds on January 1, 2006, or on January 1 of any calendar year that the Franchise Tax Board estimates the minimum contribution amount will be less than a prescribed amount. This bill would instead make those check-off provisions inoperative in any calendar year, after the 2006 repeal date has been deleted, in which the Franchise Tax Board makes the required estimate. The bill would become operative for returns filed in 2001 for taxable years beginning on and after January 1, 2000. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 18804 of the Revenue and Taxation Code is amended to read: 18804. (a) This article shall remain in effect only until January 1, 2006, and as of that date is repealed, unless a later enacted statute, which is enacted before January 1, 2006, deletes or extends that date. (b) (1) If the repeal date specified in subdivision (a) has been deleted and if, thereafter, in any calendar year the Franchise Tax Board estimates by September 1 that contributions described in this article made on returns filed in that calendar year will be less than the minimum contribution amount prescribed by paragraph (2), then this article is inoperative with respect to taxable years beginning on and after January 1 of that calendar year. The Franchise Tax Board shall estimate the annual contribution amount by September 1 of each year using the actual amounts known to be contributed and an estimate of the remaining year's contributions. (2) For purposes of this section, "minimum contribution amount" means two hundred fifty thousand dollars ($250,000) for any calendar year. (c) Notwithstanding the repeal of this article, any contribution amounts designated pursuant to this article prior to its repeal shall continue to be transferred and disbursed in accordance with this article as in effect immediately prior to that repeal. SEC. 2. Section 18808 of the Revenue and Taxation Code is amended to read: 18808. (a) This article shall remain in effect only until January 1, 2006, and as of that date is repealed, unless a later enacted statute, which is enacted before January 1, 2006, deletes that date. (b) (1) If the repeal date specified in subdivision (a) has been deleted and if, thereafter, in any calendar year the Franchise Tax Board estimates by September 1 that contributions described in this article made on returns filed in that calendar year will be less than the minimum contribution amount prescribed by paragraph (2), or the adjusted amount specified in subdivision (c), as may be applicable, then this article is inoperative with respect to taxable years beginning on and after January 1 of that calendar year. The Franchise Tax Board shall estimate the annual contribution amount by September 1 of each year using the actual amounts known to be contributed and an estimate of the remaining year's contributions. (2) For purposes of this section, "minimum contribution amount" means two hundred fifty thousand dollars ($250,000) for any calendar year. (c) For each calendar year, beginning with calendar year 2001, the Franchise Tax Board shall adjust, on or before September 1 of that calendar year, the minimum estimated contribution amount specified in subdivision (b) as follows: (1) The minimum estimated contribution amount for the calendar year shall be an amount equal to the product of the minimum estimated contribution amount for the prior September 1 multiplied by the inflation factor adjustment as specified in paragraph (2) of subdivision (h) of Section 17041, rounded off to the nearest dollar. (2) The inflation factor adjustment used for the calendar year shall be based on the figures for the percentage change in the California Consumer Price Index received on or before August 1 of the calendar year pursuant to paragraph (1) of subdivision (h) of Section 17041. (d) Notwithstanding the repeal of this article, any contribution amounts designated pursuant to this article prior to its repeal shall continue to be transferred and disbursed in accordance with this article as in effect immediately prior to that repeal. SEC. 3. Notwithstanding Section 18415 of the Revenue and Taxation Code, or any other provision of law, the amendments to Sections 18804 and 18808 of the Revenue and Taxation Code made by this act shall apply to tax returns filed in 2001 and thereafter for taxable years beginning on and after January 1, 2000.