Bill Text: CA AB1399 | 2015-2016 | Regular Session | Amended

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

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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-Amended.html

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BILL NUMBER: AB 1399	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JANUARY 4, 2016

INTRODUCED BY   Assembly Member Baker

                        FEBRUARY 27, 2015

    An act to add and repeal Section 23692 of the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.   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, as amended, Baker.  Corporation tax law: credits:
domestic violence shelters.   Income taxes: voluntary
contributions: California Domestic Violence Fund.  
   Existing law authorizes an individual to contribute amounts in
excess of his or her 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 California Domestic Violence
Fund, which would be created by this bill. The bill would prohibit a
voluntary contribution designation for the California Domestic
Violence 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
Fund, upon appropriation by the Legislature, to be allocated to the
Franchise Tax Board and the Controller for reimbursement of costs, as
provided, and the balance to the Office of Emergency Services for
the distribution of grants to specified domestic violence programs.
 
   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 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 equal or
exceed 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 Corporation Tax Law allows various credits against the tax
imposed by that law. Under existing law, the Office of Emergency
Services is responsible for administering the Comprehensive Statewide
Domestic Violence Program, which distributes grant awards to
domestic violence shelter service providers and provides financial
and technical assistance to local domestic violence centers in
implementing specified services and requires priority for this
assistance to be given to, among others, emergency shelters.
 
   This bill would, for taxable years beginning on or after January
1, 2016, and before January 1, 2021, allow a credit against the tax
imposed under that law for 50% of monetary contributions to a
domestic violence shelter service provider or emergency shelter, as
defined, eligible to receive a grant award or financial and technical
assistance pursuant to that program. The bill would provide that the
credit would not exceed $200,000 per taxpayer, that the credit would
be awarded on a first-come-first-serve basis, and that the credit
would have an aggregate cap of $50,000,000 for each calender year.
The bill would require the Franchise Tax Board and the Office of
Emergency Services to administer the credit, as specified. 

   This bill would take effect immediately as a tax levy. 
   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 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 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 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 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 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 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 Fund. The Controller shall transfer from
the Personal Income Tax Fund to the California Domestic Violence
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
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
grants 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 that are exempt from federal income
taxation as an organization described in Section 501(c)(3) of the
Internal Revenue Code. The Office of Emergency Services shall award
grants 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 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 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 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 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.  

  SECTION 1.    Section 23692 is added to the
Revenue and Taxation Code, to read:
   23692.  (a) For each taxable year beginning on or after January 1,
2016, and before January 1, 2021, there shall be allowed as a credit
against the "tax," as defined in Section 23036, an amount equal to
50 percent of a monetary contribution made by a taxpayer to a
domestic violence shelter service provider or emergency shelter.
   (b) For the purposes of this section, the following definitions
shall apply:
   (1) "Domestic violence shelter service provider" shall have the
same meaning as in Section 13823.15 of the Penal Code and eligible to
receive a grant award pursuant to the program.
   (2) "Emergency shelter" shall have the same meaning as in Section
13823.15 of the Penal Code and eligible for financial or technical
assistance pursuant to the program.
   (3) "Program" means the Comprehensive Statewide Domestic Violence
Program described in Section 13823.15 of the Penal Code.
   (c) The amount of the credit shall not exceed two hundred thousand
dollars ($200,000) per taxpayer, per taxable year.
   (d) Upon application by the taxpayer to the Franchise Tax Board,
the Franchise Tax Board shall certify a contribution meeting the
requirements of this section pursuant to paragraph (1) of subdivision
(i).
   (e) In the case where the credit allowed by this section exceeds
the "tax," the excess may be carried over to reduce the "tax" in the
following year, and succeeding five years, if necessary, until the
credit is exhausted.
   (f) This credit shall be in lieu of any other credit or deduction
that the taxpayer may otherwise claim pursuant to this part with
respect to a contribution described in subdivision (a).
   (g) This credit shall be claimed on a timely filed original
return.
   (h) (1) The aggregate amount of credits allowed under this section
shall not exceed fifty million dollars ($50,000,000) for each
calendar year.
   (2) The allocation of credits shall be on a
first-come-first-served basis.
   (i) The Franchise Tax Board and the Office of Emergency Services
shall administer this credit.
   (1) The Franchise Tax Board shall perform all of the following:
   (A) Adopt rules and regulations as necessary or appropriate to
implement this credit.
   (B) Establish application forms and procedures.
   (C) Track credits claimed.
   (D) Post aggregate totals of the credits claimed on the Internet
Web site of the Franchise Tax Board.
   (E) Determine when the aggregate total of credits reaches fifty
million dollars ($50,000,000) for a calendar year.
   (F) Based on the list provided by the Office of Emergency Services
pursuant to paragraph (2), certify that a contribution meets the
requirements of this section.
   (2) The Office of Emergency Services shall annually submit to the
Franchise Tax Board a list of those domestic violence shelter service
providers and emergency shelters eligible for a grant award or
technical and financial assistance pursuant to the Comprehensive
Statewide Domestic Violence Program described in Section 13823.15 of
the Penal Code.
   (j) The Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code) shall not apply to the rules or regulations adopted pursuant to
this section.
   (k) This section shall remain in effect only until December 1,
2021, and as of that date is repealed.  
  SEC. 2.    It is the intent of the Legislature to
make the findings required by Section 41 of the Revenue and Taxation
Code.  
  SEC. 3.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.