Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 485


Introduced by Assembly Member Williams

(Principal coauthor: Senator Allen)

February 23, 2015


begin deleteAn act to amend Section 17003 of the Revenue and Taxation Code, relating to taxation. end deletebegin insertAn act to add and repeal Article 23 (commencing with Section 18901) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, relating to taxation.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 485, as amended, Williams. begin deletePersonal income taxes. end deletebegin insertPersonal income taxes: voluntary contributions: Prevention of Animal Homelessness and Cruelty Fund.end insert

begin insert

Existing law allows an individual taxpayer to contribute amounts in excess of his or her personal income tax liability for the support of specified funds.

end insert
begin insert

This bill would 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 Prevention of Animal Homelessness and Cruelty Fund, which would be created by this bill. The bill would require the Franchise Tax Board to revise the tax return form to include a space for the designation of contributions to the fund when another voluntary designation is removed from the form or there is space, whichever occurs first.

end insert
begin insert

This bill would require money contributed to the fund, upon appropriation by the Legislature, to be allocated to the Franchise Tax Board and the Controller for reimbursement of costs, as provided, and to the Department of Food and Agriculture for the distribution of grants on a competitive basis to a city or county animal control agency or shelter, as specified, for the purposes of, among other things, funding programs designed to prevent and eliminate cat and dog homelessness.

end insert
begin insert

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 Prevention of Animal Homelessness and Cruelty Fund on the tax return, or January 1, 2022, whichever occurs first, 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 at least equal the minimum contribution amount, as defined, for that calendar year, in which case these provisions would be repealed on December 1 of that year.

end insert
begin delete

The Personal Income Tax Law imposes taxes on income and provides a definition for the Franchise Tax Board for purposes of that law.

end delete
begin delete

This bill would make a nonsubstantive change to that definition.

end delete

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertArticle 23 (commencing with Section 18901) is
2added to Chapter 3 of Part 10.2 of Division 2 of the end insert
begin insertRevenue and
3Taxation Code
end insert
begin insert, to read:end insert

begin insert

4 

5Article begin insert23.end insert  Prevention of Animal Homelessness and Cruelty
6Fund
7

 

8

begin insert18901.end insert  

(a) An individual may designate on the tax return that
9a contribution in excess of the tax liability, if any, be made to the
10Prevention of Animal Homelessness and Cruelty Fund established
11by Section 18901.1. That designation is to be used as a voluntary
12contribution on the tax return.

13(b) The contributions shall be in full dollar amounts and may
14be made individually by each signatory on a joint return.

15(c) A designation under subdivision (a) shall be made for a
16taxable year on the initial return for that taxable year and once
17made is irrevocable. If payments and credits reported on the return,
18together with any other credits associated with the taxpayer’s
19account, do not exceed the taxpayer’s liability, the return shall be
P3    1treated as though no designation has been made. If a contribution
2is specified, but a designee is not specified, the contribution shall
3be transferred to the General Fund after reimbursement of the
4direct actual costs of the Franchise Tax Board for the collection
5and administration of funds under this article.

6(d) If an individual designates a contribution to more than one
7account or fund listed on the tax return, and the amount available
8is insufficient to satisfy the total amount designated, the
9contribution shall be allocated among the designees on a pro rata
10basis.

11(e) When another voluntary contribution designation is removed
12from the tax return, or as soon as space is available, whichever
13occurs first, the Franchise Tax Board shall revise the form of the
14return to include a space labeled the “Prevention of Animal
15Homelessness and Cruelty Fund” to allow for the designation
16permitted. The form shall also include in the instructions
17information that the contribution may be in the amount of one
18dollar ($1) or more and that the contribution shall be used to fund
19all of the following:

20(1) Programs designed to prevent and eliminate cat and dog
21homelessness.

22(2) Research that explores novel approaches to preventing and
23eliminating pet homelessness.

24(3) Prevention, investigation, and prosecution of animal cruelty
25and neglect.

26(f) A deduction shall be allowed under Article 6 (commencing
27with Section 17201) of Chapter 3 of Part 10 for any contribution
28made pursuant to subdivision (a).

29

begin insert18901.1.end insert  

There is hereby established in the State Treasury the
30Prevention of Animal Homelessness and Cruelty Fund to receive
31contributions made pursuant to Section 18901. The Franchise Tax
32Board shall notify the Controller of both the amount of money paid
33by taxpayers in excess of their tax liability and the amount of refund
34money that taxpayers have designated pursuant to Section 18901
35to be transferred to the Prevention of Animal Homelessness and
36Cruelty Fund. The Controller shall transfer from the Personal
37Income Tax Fund to the Prevention of Animal Homelessness and
38Cruelty Fund an amount not in excess of the sum of the amounts
39designated by individuals pursuant to Section 18901 for payment
40into that fund.

P4    1

begin insert18901.2.end insert  

(a) All money transferred to the Prevention of Animal
2Homelessness and Cruelty Fund, upon appropriation by the
3Legislature, shall be allocated as follows:

4(1) To the Franchise Tax Board and the Controller for
5reimbursement of all costs incurred by the Franchise Tax Board
6and the Controller in connection with their duties under this article.

7(2) To the Department of Food and Agriculture for the
8distribution of grants to a city or county animal control agency or
9shelter that is current on its reporting requirements to the State
10Department of Public Health, Veterinary Public Health Section.
11Funds obtained by a municipality under a grant from the
12 Prevention of Animal Homelessness and Cruelty Fund may be
13used to pay for the following:

14(A) Programs designed to prevent and eliminate cat and dog
15homelessness.

16(B) Research that explores novel approaches to preventing and
17eliminating pet homelessness.

18(C) Prevention, investigation, and prosecution of animal cruelty
19and neglect.

20(b) Grants distributed pursuant to this article may be paid to
21outside agencies that are under contract or in a demonstrated
22partnership with that municipality to conduct these activities.

23(c) The Department of Food and Agriculture shall award grants
24through a competitive, project-specific grant process and shall be
25responsible for overseeing that grant program. A grantee shall
26not use a grant award for administrative expenses or for any
27purposes outside of California.

28

begin insert18901.3.end insert  

(a) Except as otherwise provided in subdivision (b),
29this article shall remain in effect only until January 1 of the fifth
30taxable year following the first appearance of the Prevention of
31Animal Homelessness and Cruelty Fund on the tax return, or
32January 1, 2022, whichever occurs first, and is repealed as of
33December 1 of that year.

34(b) (1) By September 1 of the second calendar year and by
35September 1 of each subsequent calendar year that the Prevention
36of Animal Homelessness and Cruelty Fund appears on the tax
37return, the Franchise Tax Board shall do all of the following:

38(A) Determine the minimum contribution amount required to
39be received during the next calendar year for the fund to appear
P5    1on the tax return for the taxable year that includes that next
2calendar year.

3(B) Provide written notification to the Department of Food and
4Agriculture of the amount determined in subparagraph (A).

5(C) Determine whether the amount of contributions estimated
6to be received during the calendar year will equal or exceed the
7minimum contribution amount determined by the Franchise Tax
8Board for the calendar year pursuant to subparagraph (A). The
9Franchise Tax Board shall estimate the amount of contributions
10to be received by using the actual amounts received and an
11estimate of the contributions that will be received by the end of
12that calendar year.

13(2) If the Franchise Tax Board determines that the amount of
14the contributions estimated to be received during a calendar year
15will not at least equal the minimum contribution amount for the
16calendar year, this article shall be inoperative with respect to
17taxable years beginning on or after January 1 of that calendar
18year and shall be repealed on December 1 of that year.

19(3) For purposes of this section, the minimum contribution
20amount for a calendar year means two hundred fifty thousand
21dollars ($250,000) for the second calendar year after the first
22appearance of the Prevention of Animal Homelessness and Cruelty
23Fund on the personal income tax return or the adjusted minimum
24contribution amount adjusted pursuant to subdivision (c).

25(c) For each calendar year, beginning with the third calendar
26year after the first appearance of the Prevention of Animal
27Homelessness and Cruelty Fund on the tax return, the Franchise
28Tax Board shall adjust, on or before September 1 of that calendar
29year, the minimum estimated contribution amount specified in
30subdivision (b) as follows:

31(1) The minimum contribution amount for the calendar year
32shall be an amount equal to the product of the minimum
33contribution amount for the prior calendar year, multiplied by the
34inflation factor adjustment as specified in paragraph (2) of
35subdivision (h) of Section 17041, rounded off to the nearest dollar.

36(2) The inflation factor adjustment used for the calendar year
37shall be based on the figures for the percentage change in the
38California Consumer Price Index received on or before August 1
39of the calendar year pursuant to paragraph (1) of subdivision (h)
40of Section 17041.

P6    1(d) Notwithstanding the repeal of this article, any contribution
2amounts designated pursuant to this article prior to its repeal shall
3continue to be transferred and disbursed in accordance with this
4article as in effect immediately prior to that repeal.

end insert
begin delete5

SECTION 1.  

Section 17003 of the Revenue and Taxation Code
6 is amended to read:

7

17003.  

“Franchise Tax Board” means the Franchise Tax Board
8described in Part 10 (commencing with Section 15700) of Division
93 of Title 2 of the Government Code. “Board” means the State
10Board of Equalization.

end delete


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