BILL NUMBER: SB 1754 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 5, 2000
AMENDED IN SENATE MARCH 28, 2000
INTRODUCED BY Senator Kelley
FEBRUARY 23, 2000
An act to add and repeal Sections 17053, 17053.1, and 23605 of the
Revenue and Taxation Code, relating to transportation, and making an
appropriation therefor, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1754, as amended, Kelley. Transportation: mass transit.
Existing law contains various provisions encouraging the use of
mass transit.
This bill would express the intent of the Legislature to encourage
the use of mass transit specific to San Diego County, incentives to
businesses and individuals for the purpose of studying the viability
of extending and creating new mass transit programs.
The Personal Income Tax Law and the Bank and Corporation Tax Law
authorize various credits against the taxes imposed by those laws.
This bill would, under both laws, for taxable and income years
beginning on or after January 1, 2001, and before January 1, 2006,
allow a tax credit in an amount equal to 40% of the cost paid or
incurred for providing subsidized public transit passes to employees,
as provided.
This bill would, under the Personal Income Tax Law, for taxable
years beginning on or after January 1, 2001, and before January 1,
2006, allow a credit in an amount equal to specified percentages of
the cost paid or incurred by an employee for subsidized public
transit passes, as specified.
This bill would make an appropriation for mass transit purposes.
This bill would require certain county transit agencies to make an
annual report to the Legislature, thereby imposing a state mandated
local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
This bill would take effect immediately as a tax levy.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intent of the Legislature to encourage the
use of mass transit specific to San Diego County and to provide
incentives to businesses and individuals for the purpose of studying
the viability of extending and creating new mass transit programs.
SEC. 2. Section 17053 is added to the Revenue and Taxation Code,
to read:
17053. (a) For each taxable year beginning on or after January 1,
2000, and before January 1, 2006, there shall be allowed as a credit
against the "net tax," as defined in Section 17039, an amount equal
to 40 percent of the cost paid or incurred by an employer for
providing subsidized public transit passes to an employee.
(b) If the credit allowed by this section exceeds the "net tax,"
the excess may be carried over to reduce the "net tax" in the
following year and succeeding years if necessary, until the credit
has been exhausted.
(c) For purposes of this section:
(1) "Employer" means a taxpayer, except a governmental agency, who
employs an employee and for whom services are performed by that
employee.
(2) "Employee" means an individual working in California and
employed by the taxpayer who performs at least 10 hours per week of
service for the taxpayer for remuneration.
(3) "Transit pass" means any pass, token, fare card, voucher, or
similar item entitling a person to transportation on a publicly owned
mass transit vehicle in a redevelopment area or high density
employment area located in San Diego County.
(4) "Redevelopment area" means an area designated by the City of
San Diego as being redeveloped by special exemption of the city.
"Redevelopment area" includes, but is not limited to, the Centre
City, the College Area, and the Naval Training Center.
(5) "High density employment area" means an area where a high
number of individuals are employed and cause increased traffic
congestion on the roads and highways leading into and out of that
area. "High density employment area" includes, but is not limited to
Centre City, Coronado, Mira Mesa, and Sorrento Valley.
(d) The credit provided in this section shall be in lieu of any
deduction under this part to which the taxpayer otherwise may be
entitled for costs to which the credit applies.
(e) This section shall remain in effect only until December 1,
2006, and as of that date, is repealed.
SEC. 3. Section 17053.1 is added to the Revenue and Taxation Code,
to read:
17053.1. (a) For each taxable year beginning on or after January
1, 2001, and before January 1, 2006, there shall be allowed as a
credit against the "net tax," as defined in Section 17039, an amount
equal to the following percentage of the cost paid or incurred by an
employee, as defined by Section 17053, for subsidized public transit
passes, as defined by Section 17053:
(1) Forty percent if the employee uses mass transit in San Diego
County for at least 80 days per taxable year.
(2) Twenty percent if the employee uses mass transit in San Diego
County for at least 40 days per taxable year.
(b) If the credit allowed by this section exceeds the
"next tax," "net tax," the excess may be carried
over to reduce the "net tax" in the following year and succeeding
years if necessary, until the credit has been exhausted.
(c) This section shall remain in effect only until December 1,
2006, and as of that date, is repealed.
SEC. 4. Section 23605 is added to the Revenue and Taxation Code,
to read:
23605. (a) For each income year beginning on or after January 1,
2001, and before January 1, 2006, there shall be allowed as a credit
against the "tax," as defined in Section 23036, an amount equal to 40
percent of the cost paid or incurred by an employer for providing
subsidized public transit passes to an employee.
(b) If the credit allowed by this section exceeds the "tax," the
excess may be carried over to reduce the "tax" in the following year
and succeeding years if necessary, until the credit has been
exhausted.
(c) For purposes of this section:
(1) "Employer" means a taxpayer, except a governmental agency, who
employs an employee and for whom services are performed by that
employee.
(2) "Employee" means an individual working in California and
employed by the taxpayer who performs at least 10 hours per week of
service for the taxpayer for remuneration.
(3) "Transit pass" means any pass, token, fare card, voucher, or
similar item entitling a person to transportation on a publicly owned
mass transit vehicle in a redevelopment area or high density
employment area located in San Diego County.
(4) "Redevelopment area" means an area designated by the City of
San Diego as being redeveloped by special exemption of the city.
"Redevelopment area" includes, but is not limited to, the Centre
City, the College Area, and the Naval Training Center.
(5) "High density employment area" means an area where a high
number of individuals are employed and cause increased congestion on
the roads and highways leading into and out of that area. "High
density employment area" includes, but is not limited to Centre City,
Mira Mesa, and Sorrento Valley.
(d) The credit provided in this section shall be in lieu of any
deduction under this part to which the taxpayer otherwise may be
entitled for costs to which the credit applies.
(e) This section shall remain in effect only until December 1,
2006, and as of that date, is repealed.
SEC. 5. County transit agencies in San Diego County shall make an
annual report to the Legislature as to the results of the program
implemented by this act.
SEC. 6. Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code. If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
SEC. 7. There is hereby appropriated the sum of one hundred forty
thousand dollars ($140,000) from the Infrastructure and Economic
Development Bank Fund, established by Section 63050 of the Government
Code, to San Diego County the San Diego
Association of Governments for the purpose of creating new
options for mass transit during the time that the tax credits allowed
by this act are in effect.
SEC. 8. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.