Bill Text: CA AB2486 | 2023-2024 | Regular Session | Amended
Bill Title: Personal Income Tax Law: Corporation Tax Law: administration: Income Tax Stabilization Fund.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-04-23 - In committee: Set, first hearing. Held under submission. [AB2486 Detail]
Download: California-2023-AB2486-Amended.html
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Amended
IN
Assembly
April 15, 2024 |
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Amended
IN
Assembly
March 18, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 2486
| Introduced by Assembly Member Vince Fong |
February 13, 2024 |
An act to amend Sections 19603 and 19604 of, and to add Section 19501.5 to 19606 to, the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2486, as amended, Vince Fong.
Personal Income Tax Law: Corporation Tax Law: administration: Income and Franchise Tax Tax Stabilization Fund.
The Personal Income Tax Law and the Corporation Tax Law impose taxes based upon taxable income at specified rates. Existing law requires all moneys and remittances received by the Franchise Tax Board as amounts imposed under those laws, except as provided, to be deposited into the Personal Income Tax Fund or the Corporation Tax Fund, as specified. Existing law requires amounts deposited into the Personal Income Tax Fund and the Corporation Tax Fund to be drawn upon for the purpose of making refunds or be transferred to the General Fund.
This bill would create the Income and Franchise Tax
Tax Stabilization Fund in the State Treasury, and would require that all revenues collected pursuant to those laws, less refunds, be deposited in that fund.
to be administered by the Franchise Tax Board. The bill would require amounts deposited in the Personal Income Tax Fund and the Corporation Tax Fund to be drawn upon for the purpose of making refunds or be transferred to the Income Tax Stabilization Fund instead of the General Fund. The bill would require the Controller to annually transfer from that fund the Income Tax Stabilization Fund to the General Fund an amount not to exceed the average revenues generated pursuant to the Personal Income Tax Law and the Corporation Tax Law, amounts deposited in the Personal Income Tax Fund and the Corporation Tax Fund,
less refunds, over the prior 5 fiscal years. The bill would adjust the amount of the transfer for inflation, as provided.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 19603 of the Revenue and Taxation Code is amended to read:19603.
The balance of the moneys in the Personal Income Tax Fund shall, upon order of the Controller, be drawn therefrom for the purpose of making refunds under this part or be transferred to theSEC. 2.
Section 19604 of the Revenue and Taxation Code is amended to read:19604.
(a) Except for fees received for services under Section 23305e, all moneys and remittances received by the Franchise Tax Board as amounts imposed under Part 11 (commencing with Section 23001), and related penalties, additions to tax, fees, and interest imposed under this part, shall be deposited in a special fund in the State Treasury, to be designated the Corporation Tax Fund. The moneys in the fund shall, upon the order of the Controller, be drawn therefrom for the purpose of making refunds under this part or be transferred into the(b) Notwithstanding Section 13340 of the Government Code, all moneys in the Corporation Tax Fund are hereby continuously appropriated, without regard to fiscal year, to the Franchise Tax Board for purposes of making all payments as provided in this section.
(a)Notwithstanding any other law, all revenues collected pursuant to Part 10 (commencing with Section 17001) and Part 11 (commencing with Section 23001), less refunds, shall be deposited into the Income and Franchise Tax Fund, which is hereby created in the State Treasury.
SEC. 3.
Section 19606 is added to the Revenue and Taxation Code, to read:19606.
There is hereby established in the State Treasury, the Income Tax Stabilization Fund, to be administered by the Franchise Tax Board.(b) (1) The Controller shall annually transfer from the Income and Franchise Tax Tax Stabilization Fund to the General Fund an amount not to exceed the average revenues generated pursuant to Part 10 (commencing
with Section 17001) and Part 11 (commencing with Section 23001), less refunds, for the prior five fiscal years. sum of the following:
(A) The average amount deposited into the Personal Income Tax Fund pursuant to Section 1585.5 of the Unemployment Insurance Code and Section 19602 of this code, less refunds, for the prior five fiscal years.
(B) The average amount deposited into the Corporation Tax Fund, pursuant to Sections 19604 and 19607, less refunds, for the prior five fiscal years.
(2) The transfer in paragraph (1) shall be adjusted for inflation as follows:
(A) The California Department of Industrial Relations shall transmit annually to the Controller the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current calendar year, no later than August 1 of the current calendar year.
(B) The Controller shall do both of the following:
(i) Compute an inflation adjustment factor by adding 100 percent to the percentage change figure that is furnished pursuant to paragraph (1)
subparagraph (A) and dividing the result by 100.
(ii) Multiply the five-year
average revenues amounts described in subparagraphs (A) and (B) of paragraph (1) by the inflation adjustment factor determined in clause (i) and round off the resulting products to the nearest one dollar ($1).
