Bill Text: CA AB1399 | 2015-2016 | Regular Session | Chaptered
Bill Title: Income taxes: voluntary contributions: California
Spectrum: Bipartisan Bill
Status: (Passed) 2016-09-12 - Chaptered by Secretary of State - Chapter 289, Statutes of 2016. [AB1399 Detail]
Download: California-2015-AB1399-Chaptered.html
BILL NUMBER: AB 1399 CHAPTERED
BILL TEXT
CHAPTER 289
FILED WITH SECRETARY OF STATE SEPTEMBER 12, 2016
APPROVED BY GOVERNOR SEPTEMBER 12, 2016
PASSED THE SENATE AUGUST 15, 2016
PASSED THE ASSEMBLY AUGUST 22, 2016
AMENDED IN SENATE JUNE 9, 2016
AMENDED IN SENATE FEBRUARY 10, 2016
AMENDED IN ASSEMBLY JANUARY 13, 2016
AMENDED IN ASSEMBLY JANUARY 4, 2016
INTRODUCED BY Assembly Member Baker
(Coauthors: Assembly Members Brough and Gipson)
(Coauthor: Senator Glazer)
FEBRUARY 27, 2015
An act to add and repeal Article 2 (commencing with Section 18711)
of Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 1399, Baker. Income taxes: voluntary contributions: California
Domestic Violence Victims Fund.
Existing law authorizes an individual to contribute amounts in
excess of his or her tax liability for the support of specified
funds. Existing law also has administrative provisions applicable to
voluntary contributions.
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 California Domestic Violence
Victims Fund, which would be created by this bill. The bill would
prohibit a voluntary contribution designation for the California
Domestic Violence Victims Fund from being added on the tax return
until another voluntary contribution designation is removed or a
space is available.
The bill would require moneys in the California Domestic Violence
Victims Fund, upon appropriation by the Legislature, to be allocated
to the Franchise Tax Board and the Controller for reimbursement of
costs and the balance to the Office of Emergency Services (OES) for
the distribution of funds to active grant recipients under the
Comprehensive Statewide Domestic Violence Program within OES, as
provided.
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 California Domestic Violence Victims Fund on
the tax return, 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 2 (commencing with Section 18711) is added to
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:
Article 2. California Domestic Violence Victims Fund
18711. (a) An individual may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
California Domestic Violence Victims Fund established by Section
18712. That designation is to be used as a voluntary contribution on
the tax return.
(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 liability, the
return shall be treated as though no designation has been made. If 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 "California Domestic Violence Victims 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 further the services that
California's domestic violence programs provide for victims of
domestic violence.
(f) Notwithstanding any other law, a voluntary contribution
designation for the California Domestic Violence Victims Fund shall
not be added on the tax return until another voluntary contribution
designation is removed or space is available.
(g) A deduction shall be allowed under Article 6 (commencing with
Section 17201) of Chapter 3 of Part 10 for any contribution made
pursuant to subdivision (a).
18712. There is hereby established in the State Treasury the
California Domestic Violence Victims Fund to receive contributions
made pursuant to Section 18711. 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 18711 to be transferred
to the California Domestic Violence Victims Fund. The Controller
shall transfer from the Personal Income Tax Fund to the California
Domestic Violence Victims Fund an amount not in excess of the sum of
the amounts designated by individuals pursuant to Section 18711 for
payment into that fund.
18713. All moneys transferred to the California Domestic Violence
Victims Fund, upon appropriation by the Legislature, shall be
allocated as follows:
(a) To the Franchise Tax Board and the Controller for
reimbursement of all costs incurred by the Franchise Tax Board and
the Controller in connection with their duties under this article.
(b) To the Office of Emergency Services for the distribution of
funds to domestic violence programs in California that are in active
status, as reflected on the Business Search page of the Secretary of
State's Internet Web site, and are exempt from federal income
taxation as an organization described in Section 501(c)(3) of the
Internal Revenue Code, and are active grant recipients under the
Comprehensive Statewide Domestic Violence Program within the Office
of Emergency Services as described in Section 13823.15 of the Penal
Code. The Office of Emergency Services shall award the funds and be
responsible for overseeing the grant program.
(1) A domestic violence program shall not use grant moneys awarded
pursuant to this section for its administrative costs.
(2) The Office of Emergency Services shall not use fund moneys for
its administrative costs.
18714. (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 California
Domestic Violence Victims Fund on the personal income tax return, 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 California Domestic Violence
Victims 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 Office of Emergency
Services 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 California Domestic Violence Victims 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 California Domestic Violence
Victims 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.
