Bill Text: CA AB511 | 2013-2014 | Regular Session | Chaptered
Bill Title: Income taxes: voluntary contributions: American Red
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2013-10-01 - Chaptered by Secretary of State - Chapter 451, Statutes of 2013. [AB511 Detail]
Download: California-2013-AB511-Chaptered.html
BILL NUMBER: AB 511 CHAPTERED
BILL TEXT
CHAPTER 451
FILED WITH SECRETARY OF STATE OCTOBER 1, 2013
APPROVED BY GOVERNOR OCTOBER 1, 2013
PASSED THE SENATE AUGUST 26, 2013
PASSED THE ASSEMBLY AUGUST 30, 2013
AMENDED IN SENATE JUNE 19, 2013
AMENDED IN ASSEMBLY APRIL 9, 2013
AMENDED IN ASSEMBLY MARCH 18, 2013
INTRODUCED BY Assembly Member Pan
FEBRUARY 20, 2013
An act to add and repeal Article 12 (commencing with Section
18830) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and
Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 511, Pan. Income taxes: voluntary contributions: American Red
Cross, California Chapters 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 American Red Cross, California Chapters 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 Office of
Emergency Services to disburse the moneys to the American Red Cross,
California Chapters for planning and implementing programs for
disaster relief, and to ensure state oversight of that disbursement,
as prescribed. This bill also would require a plan for the use of
these contributions to be submitted to the Office of Emergency
Services, as provided.
This bill would provide that these voluntary contribution
provisions are inoperative and repealed on the earlier of the
following: inoperative on January 1 of the 5th taxable year following
the first appearance of the fund on the tax return and repealed on
December 1 of that year or 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adjusted amount for subsequent taxable years, and repealed on
December 1 of that calendar year.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 12 (commencing with Section 18830) is added to
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:
Article 12. American Red Cross, California Chapters Fund
18830. (a) An individual may designate on the tax return that a
contribution in excess of tax liability, if any, be made to the
American Red Cross, California Chapters Fund established by Section
18831.
(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 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 "American Red Cross, California Chapters
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 American Red Cross, California
Chapters for planning and implementing programs for disaster relief
in California. The American Red Cross Capital Region Chapter, on
behalf of the American Red Cross, California Chapters, shall submit
to the Office of Emergency Services within 60 days of receiving the
contributions from the Office of Emergency Services, a plan for the
use of the contributions received under the act.
(f) Notwithstanding any other provision, a voluntary contribution
designation for the American Red Cross, California Chapters 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).
18831. There is hereby established in the State Treasury the
American Red Cross, California Chapters Fund to receive contributions
made pursuant to Section 18830. 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 18830 to be transferred
to the American Red Cross, California Chapters Fund. The Controller
shall transfer from the Personal Income Tax Fund to the American Red
Cross, California Chapters Fund an amount not in excess of the sum of
the amounts designated by individuals pursuant to Section 18830 for
payment into that fund.
18832. All money transferred to the American Red Cross,
California Chapters 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) (A) To the Office of Emergency Services to disburse the
moneys to the American Red Cross, California Chapters, for the
purposes set forth in Section 18830, and to ensure state oversight of
that disbursement.
(B) All moneys allocated pursuant to subparagraph (A) may be
carried over from the year in which they were received.
(2) The American Red Cross, California Chapters shall not use more
than 5 percent of the moneys received pursuant to this article for
administrative costs.
18833. (a) Except as otherwise provided in paragraph (2) of
subdivision (b), this article shall remain in effect only until
January 1 of the fifth taxable year following the first appearance of
the American Red Cross, California Chapters 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 American Red Cross, California
Chapters 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 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 American Red Cross, California Chapters 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 American Red Cross, California
Chapters 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.
