Bill Text: CA SB571 | 2013-2014 | Regular Session | Chaptered
Bill Title: Income taxes: voluntary contributions: Keep Arts in
Sponsorship: Partisan Bill (Democrat 2)
Status: (Passed) 2013-09-30 - Chaptered by Secretary of State. Chapter 430, Statutes of 2013. [SB571 Detail]
Download: California-2013-SB571-Chaptered.html
BILL NUMBER: SB 571 CHAPTERED
BILL TEXT
CHAPTER 430
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2013
APPROVED BY GOVERNOR SEPTEMBER 30, 2013
PASSED THE SENATE SEPTEMBER 4, 2013
PASSED THE ASSEMBLY SEPTEMBER 3, 2013
AMENDED IN ASSEMBLY AUGUST 22, 2013
AMENDED IN ASSEMBLY JUNE 25, 2013
AMENDED IN SENATE MAY 14, 2013
AMENDED IN SENATE MAY 7, 2013
INTRODUCED BY Senator Liu
(Coauthor: Assembly Member Gatto)
FEBRUARY 22, 2013
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 571, Liu. Income taxes: voluntary contributions: Keep Arts in
Schools 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 Keep Arts in Schools 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 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and repealed on December 1 of that year. The bill would further
provide that these provisions are 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repealed on December 1 of that calendar year.
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. Keep Arts in Schools 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 Keep
Arts in Schools 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. If 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 a designation had not been made. If
a designee is not 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 "Keep Arts in Schools 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 Keep Arts in Schools 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 Keep
Arts in Schools 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 Keep
Arts in Schools Fund. The Controller shall transfer from the Personal
Income Tax Fund to the Keep Arts in Schools 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 Keep Arts in Schools 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 for children
in preschool through 12th grade 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 Keep Arts in
Schools 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 Keep Arts in Schools 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 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 Keep Arts in Schools 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 Keep Arts in Schools 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.
