Bill Text: CA AB754 | 2013-2014 | Regular Session | Chaptered
Bill Title: Income taxes: voluntary contributions: California Beach and Coastal Enhancement Account.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2013-09-20 - Chaptered by Secretary of State - Chapter 323, Statutes of 2013. [AB754 Detail]
Download: California-2013-AB754-Chaptered.html
BILL NUMBER: AB 754 CHAPTERED
BILL TEXT
CHAPTER 323
FILED WITH SECRETARY OF STATE SEPTEMBER 20, 2013
APPROVED BY GOVERNOR SEPTEMBER 20, 2013
PASSED THE SENATE AUGUST 26, 2013
PASSED THE ASSEMBLY MAY 23, 2013
AMENDED IN ASSEMBLY MAY 20, 2013
AMENDED IN ASSEMBLY APRIL 29, 2013
AMENDED IN ASSEMBLY APRIL 11, 2013
AMENDED IN ASSEMBLY MARCH 14, 2013
INTRODUCED BY Assembly Member Muratsuchi
FEBRUARY 21, 2013
An act to add and repeal Article 5.1 (commencing with Section
18745) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and
Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 754, Muratsuchi. Income taxes: voluntary contributions:
California Beach and Coastal Enhancement Account.
The Personal Income Tax Law authorizes individuals to contribute
amounts in excess of their tax liability for the support of specified
funds. Existing law creates the California Beach and Coastal
Enhancement Account in the California Environmental License Plate
Fund.
This bill would authorize individuals to designate on their tax
returns, under the designation titled "Protect Our Coast and Oceans
Fund," that a contribution in excess of their tax liability be made
to the California Beach and Coastal Enhancement Account. This bill
would require that all moneys contributed to the account pursuant to
these provisions, upon appropriation by the Legislature, be allocated
to the Franchise Tax Board and the Controller for reimbursement and
to the California Coastal Commission for grants and programs that
preserve, protect, or enhance coastal resources and promote coastal
and marine educational activities for underserved communities.
This bill would provide that these voluntary contribution
provisions are inoperative and repealed, respectively, on the earlier
of January 1 of the 5th taxable year following the taxable year the
account first appears on the tax return and December 1 of that year;
or 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 on December 1 of that calendar year.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 5.1 (commencing with Section 18745) is added to
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:
Article 5.1. California Beach and Coastal Enhancement Account
18745. (a) An individual may designate on the tax return, under
the space titled "Protect Our Coast and Oceans Fund," that a
contribution in excess of tax liability, if any, be made to the
California Beach and Coastal Enhancement Account established by
paragraph (1) of subdivision (c) of Section 5067 of the Vehicle Code.
(b) A contribution shall be in full dollar amounts 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 individual's account, do not exceed the individual'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 "Protect Our Coast and Oceans 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 for grants and programs that
preserve, protect, or enhance coastal resources and promote coastal
and marine educational activities for underserved communities.
(f) Notwithstanding any other law, a voluntary contribution
designation for the Protect Our Coast and Oceans Fund shall not be
added on the tax return until another voluntary contribution
designation is removed or as soon as 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).
18746. The Franchise Tax Board shall notify the Controller of
both the amount of money paid by individuals in excess of their tax
liability and the amount of refund money that individuals have
designated pursuant to Section 18745 to be transferred to the
California Beach and Coastal Enhancement Account. The Controller
shall transfer from the Personal Income Tax Fund to the California
Beach and Coastal Enhancement Account an amount not in excess of the
sum of the amounts designated by individuals pursuant to Section
18745 for payment into that account.
18747. All money designated under the Protect Our Coast and
Oceans Fund space on a tax return and transferred to the California
Beach and Coastal Enhancement Account, pursuant to Section 18745,
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) (1) To the California Coastal Commission to support eligible
programs awarded grants under the selection criteria established by
the California Coastal Commission for the Whale Tail Grants Program,
and for direct program-related expenses.
(2) All moneys allocated pursuant to paragraph (1) may be carried
over from the year in which they were received.
18748. (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 Protect Our Coast
and Oceans 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 Protect Our Coast and Oceans 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 account to appear on
the tax return for the taxable year that includes that next calendar
year and provide written notification to the California Coastal
Commission of the amount determined.
(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 Protect Our Coast and Oceans 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 Protect Our Coast and Oceans 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.
