BILL NUMBER: AB 132 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 21, 2003
INTRODUCED BY Assembly Member Chavez
JANUARY 16, 2003
An act to amend Section 18724 18871
of the Revenue and Taxation Code, relating to designated taxpayer
contributions.
LEGISLATIVE COUNSEL'S DIGEST
AB 132, as amended, Chavez. Income taxes: designated
contributions : senior citizens .
The Personal Income Tax Law authorizes taxpayers to contribute
amounts in excess of their tax liability to be deposited into
specified funds for the support of various charitable organizations.
These contribution designations appear as a line item on the
personal income tax form. Existing law authorizes new charitable
designations to be placed on the personal income tax form, but only
after an existing designation has expired or is removed from the
personal income tax form.
This bill would prioritize the addition of authorized charitable
designations to the tax form on the basis of the order of chaptering,
starting with the earliest chaptered enactment. This bill would
also authorize the Franchise Tax Board to add one or more voluntary
contribution designations to the tax form, if the board determines
that space is available on the tax return to accommodate the
additional voluntary contribution designation.
Under the Personal Income Tax Law, taxpayers are allowed until
January 1, 2005, to contribute amounts in excess of their tax
liability for the support of the California Fund for Senior Citizens.
Existing law provides for the repeal of the contribution provisions
for these funds on either the January 1 following the calendar year
that the Franchise Tax Board estimates the minimum contribution
amount will be less than a prescribed amount, or on January 1, 2005,
whichever occurs first.
This bill would, under this latter limit, extend the operation of
those contribution provisions until January 1, 2010.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 18724 of the Revenue and Taxation
SECTION 1. Section 18871 of the Revenue and Taxation Code is
amended to read:
18871. In implementing this chapter, all of the following
requirements shall apply:
(a) Unless otherwise specifically required by law, each voluntary
contribution fund or account established by this chapter shall be
included on the forms of the return through the taxable year
immediately preceding the year of repeal of the article establishing
that voluntary contribution fund or account.
(b) Notwithstanding the repeal of any article of this chapter, the
voluntary contribution fund or account specified in that article
shall continue in effect until December 31 of the year of the repeal
of that article, and any contribution designated pursuant to that
article on a timely filed initial return for the taxable year
immediately preceding the date of repeal shall be transferred and
disbursed, and all costs incurred by the Franchise Tax Board and
Controller in connection with the transfer and disbursement of these
contribution amounts shall continue to be paid, in accordance with
that article as it read immediately prior to its repeal.
(c) Unless otherwise specifically required by law, a contribution
made to any voluntary contribution fund or account established by
this chapter shall be subject to the following provisions:
(1) In the event that no designee is specified, the contribution
shall, after reimbursement of the direct actual costs of the
Franchise Tax Board for the collection and administration of
contributions made under this article, be transferred to the General
Fund.
(2) In the event an individual designates a contribution to more
than one account or fund listed on the tax return, and the amount
available is insufficient to satisfy the total amount designated, the
contribution shall be allocated among the designees on a pro rata
basis.
(d) (1) If the number of contingent voluntary contribution
designations that are eligible to be added to the tax return for a
taxable year is greater than the number of voluntary contribution
designations removed, those contingent voluntary contribution
designations that are eligible to be added to the tax return shall be
added to the tax return in the order of the date of enactment, with
the voluntary contribution designation with the earliest date of
enactment to be added first.
(2) For purposes of this subdivision:
(A) A contingent voluntary contribution designation means a
voluntary contribution designation authorized under this chapter that
may not be added to the tax return until another voluntary
contribution designation is removed from the tax form.
(B) The date of enactment of a contingent voluntary contribution
designation authorized under this chapter shall be the date the act
authorizing the contingent voluntary contribution designation was
filed with the Secretary of State. In the event that more than one
act authorizing a contingent voluntary contribution designation is
filed with the Secretary of State on the same date, the act with the
lowest chapter number will be conclusively presumed to have been
filed with the Secretary of State before any other act authorizing a
contingent voluntary contribution designation with a higher number.
(e) Notwithstanding subdivision (d), or the contingency language
of an act prohibiting the addition of a contingent voluntary
contribution designation until another voluntary contribution
designation is removed, the Franchise Tax Board may add one or more
voluntary contribution designations if the board determines that
space is available on the tax return to accommodate the additional
voluntary contribution designation. Code is amended
to read:
18724. (a) This article shall remain in effect only until January
1, 2010, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2010, deletes that date.
(b) If 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 two hundred fifty thousand dollars
($250,000) for taxable years beginning in 2001, or the adjusted
amount specified in subdivision (c) for any subsequent taxable year,
as may be applicable, then this article is repealed with respect to
taxable years beginning on or 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.
(c) For each calendar year, beginning with calendar year 2002, 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.