Bill Text: CA AB1765 | 2013-2014 | Regular Session | Chaptered
Bill Title: Personal income taxes: voluntary contributions: Habitat for Humanity Fund.
Spectrum: Bipartisan Bill
Status: (Passed) 2014-09-16 - Chaptered by Secretary of State - Chapter 354, Statutes of 2014. [AB1765 Detail]
Download: California-2013-AB1765-Chaptered.html
BILL NUMBER: AB 1765 CHAPTERED
BILL TEXT
CHAPTER 354
FILED WITH SECRETARY OF STATE SEPTEMBER 16, 2014
APPROVED BY GOVERNOR SEPTEMBER 16, 2014
PASSED THE SENATE AUGUST 19, 2014
PASSED THE ASSEMBLY AUGUST 21, 2014
AMENDED IN SENATE AUGUST 14, 2014
AMENDED IN SENATE JUNE 4, 2014
AMENDED IN ASSEMBLY APRIL 2, 2014
INTRODUCED BY Assembly Member Jones-Sawyer
(Coauthors: Assembly Members Gorell, Holden, Olsen, and Ting)
(Coauthor: Senator Cannella)
FEBRUARY 14, 2014
An act to add and repeal Article 22 (commencing with Section
18900.20) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and
Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 1765, Jones-Sawyer. Personal income taxes: voluntary
contributions: Habitat for Humanity Fund.
Existing law authorizes an individual to contribute amounts in
excess of his or her income tax liability for the support of
specified funds.
This bill would additionally allow an individual to designate on
his or her tax return that a specified amount in excess of his or her
tax liability be transferred to the Habitat for Humanity Fund, which
would be created by this bill. The bill would prohibit a voluntary
contribution designation for this fund from being added until another
designation is removed or space is available, whichever occurs
first.
The bill would require moneys in the Habitat for Humanity Fund,
upon appropriation by the Legislature, to be allocated to the
Franchise Tax Board, the Controller, and the Department of Housing
and Community Development for reimbursement of costs, as provided,
and the balance to the Department of Housing and Community
Development to distribute grants to Habitat for Humanity affiliates
in California that meet certain requirements, including having a
specified tax-exempt status. The bill would require the Department of
Housing and Community Development to award grants through a
competitive, project-specific grant process and be responsible for
overseeing that grant program. The bill would prohibit a Habitat for
Humanity affiliate from using a grant award for administrative
expenses or for any purposes outside of California.
The bill would provide that these provisions would remain in
effect only until January 1 of the 5th taxable year following the
first appearance of the Habitat for Humanity Fund on the tax return
or January 1, 2021, whichever occurs first, but would further provide
for an earlier repeal if the Franchise Tax Board determines that the
amount of contributions estimated to be received during a calendar
year will not at least equal the minimum contribution amount, as
defined, for that calendar year, in which case these provisions would
be repealed on December 1 of that year.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 22 (commencing with Section 18900.20) is added
to Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:
Article 22. Habitat for Humanity Fund
18900.20. (a) An individual may designate on the tax return that
a contribution in excess of the tax liability, if any, be made to the
Habitat for Humanity Fund established by Section 18900.22.
(b) The contributions shall be in full dollar amounts and may be
made individually by each signatory on a joint return.
(c) A designation under subdivision (a) shall be made for a
taxable year on the original return for that taxable year, and once
made shall be irrevocable. If payments and credits reported on the
return, together with any other credits associated with the
individual's account, do not exceed the individual's tax liability,
the return shall be treated as though no designation has been made.
If a contribution is specified, but a designee is not specified, the
contribution shall be transferred to the General Fund after
reimbursement of the direct actual costs of the Franchise Tax Board
for the collection and administration of funds under this article.
(d) If 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.
(e) The Franchise Tax Board shall revise the form of the return to
include a space labeled "Habitat for Humanity Fund" to allow for the
designation permitted under subdivision (a). The form shall also
include in the instructions information that the contribution may be
in the amount of one dollar ($1) or more and that the contribution
shall be used to build affordable housing in California.
(f) Notwithstanding any other law, a voluntary contribution
designation for the Habitat for Humanity Fund shall not be added on
the tax return until another voluntary contribution designation is
removed or space is available, whichever occurs first.
(g) A deduction shall be allowed under Article 6 (commencing with
Section 17201) of Chapter 3 of Part 10 for a contribution made
pursuant to subdivision (a).
18900.22. There is hereby established in the State Treasury the
Habitat for Humanity Fund to receive contributions made pursuant to
Section 18900.20. The Franchise Tax Board shall notify the Controller
of both the amount of money paid by taxpayers in excess of their tax
liability and the amount of refund money that taxpayers have
designated pursuant to Section 18900.20 to be transferred to the
Habitat for Humanity Fund. The Controller shall transfer from the
Personal Income Tax Fund to the Habitat for Humanity Fund an amount
not in excess of the sum of the amounts designated by individuals
pursuant to Section 18900.20 for payment into that fund.
18900.24. All money transferred to the Habitat for Humanity Fund,
upon appropriation by the Legislature, shall be allocated as
follows:
(a) To the Franchise Tax Board, the Controller, and the Department
of Housing and Community Development for reimbursement of all costs
incurred by the Franchise Tax Board, the Controller, and the
Department of Housing and Community Development in connection with
their duties under this article.
(b) The Department of Housing and Community Development for
distribution of grants to Habitat for Humanity affiliates in
California that are in active status, as described on the Business
Search page of the Secretary of State's Internet Web site, and that
are exempt from federal income taxation as an organization described
in Section 501(c)(3) of the Internal Revenue Code. The Department of
Housing and Community Development shall award grants through a
competitive, project-specific grant process and be responsible for
overseeing that grant program. A Habitat for Humanity affiliate shall
not use a grant award for administrative expenses or for any
purposes outside of California.
18900.26. (a) Except as otherwise provided in subdivision (b),
this article shall remain in effect only until January 1 of the fifth
taxable year following the first appearance of the Habitat for
Humanity Fund on the personal income tax return, or January 1, 2021,
whichever occurs first, and is repealed as of December 1 of that
year.
(b) (1) By September 1 of the second calendar year and each
subsequent calendar year that the Habitat for Humanity Fund appears
on the tax return, the Franchise Tax Board shall do all of the
following:
(A) Determine the minimum contribution amount required to be
received during the next calendar year for the fund to appear on the
tax return for the taxable year that includes that next calendar
year.
(B) Provide written notification to the Controller and the
Department of Housing and Community Development of the amount
determined in subparagraph (A).
(C) Determine whether the amount of contributions estimated to be
received during the calendar year will equal or exceed the minimum
contribution amount determined by the Franchise Tax Board for the
calendar year pursuant to subparagraph (A). The Franchise Tax Board
shall estimate the amount of contributions to be received by using
the actual amounts received and an estimate of the contributions that
will be received by the end of that calendar year.
(2) If the Franchise Tax Board determines that the amount of the
contributions estimated to be received during a calendar year will
not at least equal the minimum contribution amount for the calendar
year, this article shall be inoperative with respect to taxable years
beginning on or after January 1 of that calendar year and shall be
repealed on December 1 of that year.
(3) For purposes of this section, the minimum contribution amount
for a calendar year means two hundred fifty thousand dollars
($250,000) for the second calendar year after the first appearance of
the Habitat for Humanity Fund on the personal income tax return or
the minimum contribution amount as adjusted pursuant to subdivision
(c).
(c) For each calendar year, beginning with the third calendar year
after the first appearance of the Habitat for Humanity Fund on the
personal income tax return, the Franchise Tax Board shall adjust, on
or before September 1 of that calendar year, the minimum contribution
amount specified in subdivision (b) as follows:
(1) The minimum contribution amount for the calendar year shall be
an amount equal to the product of the minimum contribution amount
for the prior calendar year multiplied by the inflation factor
adjustment as specified in subparagraph (A) of 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 for all items 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.
