Bill Text: CA AB511 | 2013-2014 | Regular Session | Amended

California Assembly Bill 511 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Income taxes: voluntary contributions: American Red

Sponsorship: Partisan Bill (Democrat 1)

Status: (Passed) 2013-10-01 - Chaptered by Secretary of State - Chapter 451, Statutes of 2013. [AB511 Detail]

Download: California-2013-AB511-Amended.html

BILL NUMBER: AB 511	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 18, 2013

INTRODUCED BY   Assembly Member Pan

                        FEBRUARY 20, 2013

   An act to add and repeal Article 12 (commencing with Section
18830) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and
Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 511, as amended, Pan. Income taxes: voluntary contributions:
American Red Cross  , California Chapters  Fund.
   The Personal Income Tax Law authorizes taxpayers to contribute
amounts in excess of their tax liability for the support of specified
funds.
   This bill would authorize taxpayers to designate on their tax
returns that a specified amount in excess of their tax liability be
transferred to the American Red Cross  , California Chapters
 Fund, which is created by this bill. This bill would require
that all moneys contributed to the fund pursuant to these provisions,
upon appropriation by the Legislature, be allocated to the Franchise
Tax Board and the Controller for reimbursement and to the American
Red Cross  , California Chapters  for  disaster
relief   planning for the implementation of programs to
assist in disaster preparedness and response throughout the state and
for the cost of administering those programs  , as prescribed.
 This bill also would require a plan for the use of these
contributions to be submitted to the Office of Emergency Services, as
provided. 
   This bill would provide that these voluntary contribution
provisions are inoperative and repealed on the earlier of the
following: inoperative on January 1 of the 5th taxable year following
the taxable year the fund first appears on the tax return and
repealed on December 1 of that taxable year or inoperative for
taxable years beginning on or after January 1 of the calendar year in
which the Franchise Tax Board estimates by September 1 that the
contributions made on returns filed in that calendar year will be
less than $250,000, or an adjusted amount for subsequent taxable
years, and are repealed on December 1 of that calendar year.
   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.  Article 12 (commencing with Section 18830) is added to
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:

      Article 12.  American Red Cross  , California Chapters
 Fund


   18830.  (a) An individual may designate on the tax return that a
contribution in excess of tax liability, if any, be made to the
American Red Cross  , California Chapters Fund established
by Section 18831.
   (b) A contribution shall be in a full dollar amount and may be
made individually by each signatory on a joint return.
   (c) A designation made under subdivision (a) shall be made for any
taxable year on the original return for that taxable year, and once
made shall be irrevocable. In the event that payments and credits
reported on the return, together with any other credits associated
with the taxpayer's account do not exceed the taxpayer's tax
liability, if any, the return shall be treated as though no
designation had been made. 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 funds under this article, be transferred to the
General Fund.
   (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 designated accounts on a
pro rata basis.
   (e) The Franchise Tax Board shall revise the form of the return to
include a space labeled the "American Red Cross  , California
Chapters  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 by the American
Red Cross  to fund disaster relief.   Chapters
of California for planning for the implementation of programs to
assist in disaster preparedness and response throughout the state and
for the cost of administering those programs. The  
American Red Cross Capital Region Chapter, on behalf of the American
Red Cross Chapters of California, shall submit to the Office of
Emergency Services within 60 days of receiving the taxpayer check off
funds from the Controller, a plan for the use of the contributions
received under the act. 
   (f) Notwithstanding any other provision, a voluntary contribution
designation for the American Red Cross  , California Chapters
 Fund shall not be added on the tax return until another
voluntary contribution designation is removed.
   (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).
   18831.  There is hereby established in the State Treasury the
American Red Cross  , California Chapters  Fund to receive
contributions made pursuant to Section 18830. 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 18830 to be
transferred to the American Red Cross  , California Chapters
 Fund. The Controller shall transfer from the Personal Income
Tax Fund to the American Red Cross  , California Chapters 
Fund an amount not in excess of the sum of the amounts designated by
individuals pursuant to Section 18830 for payment into that fund.
   18832.  All money transferred to the American Red Cross  ,
California Chapters  Fund, upon appropriation by the
Legislature, shall be allocated as follows:
   (a) To the Franchise Tax Board and the Controller only 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 American Red Cross  , California Chapters  ,
for the  purpose of funding disaster relief.  
purposes set forth in Section 18830. 
   18833.  (a) Except as otherwise provided in paragraph (2) of
subdivision (b), this article shall remain in effect only until
January 1 of the fifth taxable year following the first appearance of
the American Red Cross  , California Chapters  Fund on the
personal income tax return, and is repealed as of December 1 of that
taxable year.
   (b) (1) By September 1 of the second calendar year and each
subsequent calendar year that the American Red Cross  ,
California   Chapters  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) 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 is 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 calendar 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 American Red Cross  , California Chapters  Fund on the
personal income tax return or the adjusted minimum contribution
amount adjusted pursuant to subdivision (c).
   (c) For each calendar year, beginning with the third calendar year
after the first appearance of the American Red Cross  ,
California Chapters  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 estimated contribution amount for the calendar
year shall be an amount equal to the product of the minimum estimated
contribution amount for the 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.