Bill Text: CA SB1076 | 2009-2010 | Regular Session | Chaptered
Bill Title: Income taxes: voluntary contributions: Arts Council Fund.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2010-09-27 - Chaptered by Secretary of State. Chapter 319, Statutes of 2010. [SB1076 Detail]
Download: California-2009-SB1076-Chaptered.html
BILL NUMBER: SB 1076 CHAPTERED
BILL TEXT
CHAPTER 319
FILED WITH SECRETARY OF STATE SEPTEMBER 27, 2010
APPROVED BY GOVERNOR SEPTEMBER 25, 2010
PASSED THE SENATE AUGUST 25, 2010
PASSED THE ASSEMBLY AUGUST 17, 2010
AMENDED IN ASSEMBLY AUGUST 2, 2010
AMENDED IN SENATE MARCH 22, 2010
INTRODUCED BY Senator Price
(Principal coauthor: Assembly Member Portantino)
FEBRUARY 17, 2010
An act to add and repeal Article 19 (commencing with Section
18891) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and
Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 1076, Price. Income taxes: voluntary contributions: Arts
Council 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 Arts Council 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 Arts Council for grants, as prescribed.
This bill would provide that these voluntary contribution
provisions are repealed on January 1 of the 5th taxable year
following the taxable year the fund first appears on the tax return.
The bill would further provide that these provisions are repealed for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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 19 (commencing with Section 18891) is added to
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:
Article 19. Arts Council Fund
18891. (a) An individual may designate on the tax return that a
contribution in excess of tax liability, if any, be made to the Arts
Council Fund established by Section 18892.
(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 the 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 "Arts Council 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 Arts Council for the allocation of grants to
individuals or organizations administering arts programs.
(f) Notwithstanding any other provision, a voluntary contribution
designation for the Arts Council 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).
18892. There is hereby established in the State Treasury the Arts
Council Fund to receive contributions made pursuant to Section
18891. 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 18891 to be transferred to the Arts
Council Fund. The Controller shall transfer from the Personal Income
Tax Fund to the Arts Council Fund an amount not in excess of the sum
of the amounts designated by individuals pursuant to Section 18891
for payment into that fund.
18893. All money transferred to the Arts Council 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) (1) To the Arts Council, for allocation of grants to
individuals or organizations administering arts programs pursuant to
subdivision (o) of Section 8753 of the Government Code.
(2) Funds made available to the Arts Council shall not be used for
any purpose other than to provide grants as prescribed by this
subdivision. Funds made available pursuant to this subdivision shall
not be used by the Arts Council for administrative purposes, to
reimburse its costs associated with administering grants, to further
its programs, or for any purpose relating to its own operations.
18894. (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 Arts Council Fund
on the personal income tax return, and as of that date is repealed,
unless a later enacted statute, that is enacted before the applicable
date, deletes or extends that date.
(b) (1) By September 1 of the second calendar year and each
subsequent calendar year that the Arts Council 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 repealed with respect to taxable years
beginning on or after January 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 Arts Council 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 Arts Council 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.
