Bill Text: CA ACA23 | 2019-2020 | Regular Session | Introduced
Bill Title: Lottery prizes: personal income tax.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-06-03 - Referred to Com. on G.O. [ACA23 Detail]
Download: California-2019-ACA23-Introduced.html
CALIFORNIA LEGISLATURE—
2019–2020 REGULAR SESSION
Assembly Constitutional Amendment
No. 23
| Introduced by Assembly Member Gray |
February 21, 2020 |
A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Section 19 of Article IV thereof, relating to the lottery.
LEGISLATIVE COUNSEL'S DIGEST
ACA 23, as introduced, Gray.
Lottery prizes: personal income tax.
The Personal Income Tax Law imposes taxes on taxable income, as provided, and existing law provides for the administration of those taxes. The California Constitution, until December 1, 2031, imposes specified income tax rates and brackets on income above $250,000. Existing law, approved as Proposition 37 at the November 7, 1984, statewide general election, prohibits a state or local tax from being imposed on any prize awarded by the lottery.
This measure would apply the Personal Income Tax Law rates, the constitutional income tax rates described above, and the laws regarding administration of the income tax to a prize awarded by the lottery that is in an amount equal to or greater than $1,000.
Digest Key
Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
Resolved by the Assembly, the Senate concurring, That the Legislature of the State of California at its 2019–20 Regular Session commencing on the third day of December 2018, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California, that the Constitution of the State be amended as follows:
That Section 19 of Article IV thereof is amended to read:
SEC. 19.
(a) The Legislature has no power to authorize lotteries, and shall prohibit the sale of lottery tickets in the State.(b) The Legislature may provide for the regulation of horse races and horse race meetings and wagering on the results.
(c) Notwithstanding subdivision (a), the Legislature by statute may authorize cities and counties to provide for bingo games, but only for charitable purposes.
(d) Notwithstanding subdivision (a), there is authorized the establishment of a California State Lottery.
(e) The Legislature has no power
to authorize, and shall prohibit, casinos of the type currently operating in Nevada and New Jersey.
(f) Notwithstanding subdivisions (a) and (e), and any other provision of state law, the Governor is authorized to negotiate and conclude compacts, subject to ratification by the Legislature, for the operation of slot machines and for the conduct of lottery games and banking and percentage card games by federally recognized Indian tribes on Indian lands in California in accordance with federal law. Accordingly, slot machines, lottery games, and banking and percentage card games are hereby permitted to be conducted and operated on tribal lands subject to those compacts.
(f) Notwithstanding subdivision (a), the Legislature may authorize private, nonprofit, eligible organizations, as defined by the Legislature, to conduct raffles as a funding mechanism to provide support for their own
or another private, nonprofit, eligible organization’s beneficial and charitable works, provided that (1) at least 90 percent of the gross receipts from the raffle go directly to beneficial or charitable purposes in California, and (2) any person who receives compensation in connection with the operation of a raffle is an employee of the private nonprofit organization that is conducting the raffle. The Legislature, two-thirds of the membership of each house concurring, may amend the percentage of gross receipts required by this subdivision to be dedicated to beneficial or charitable purposes by means of a statute that is signed by the Governor.
(g) (1) The tax rates provided in the Personal Income Tax Law (Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code), as may be amended from time to time, and the
rates specified in paragraph 2 of subdivision (f) of Section 36 of Article XIII, shall apply to a prize awarded by the lottery that is an amount that is equal to or greater than one thousand dollars ($1,000).
(2) For purposes of Part 10 (commencing with Section 17001) of, and Part 10.2 (commencing with Section 18401) of, Division 2 of the Revenue and Taxation Code, the imposition of taxes in this subdivision shall be deemed established and imposed under Section 17041 of the Revenue and Taxation Code.
