Amended in Assembly June 16, 2016

Amended in Senate April 14, 2016

Senate Bill No. 1476

Introduced by Committee on Governance and Finance (Senators Hertzberg (Chair), Beall, Hernandez, Lara, Moorlach, Nguyen, and Pavley)

March 7, 2016

An act to add Section 18873 to the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

SB 1476, as amended, Committee on Governance and Finance. begin delete Income taxation: end delete begin insert Personal income taxes: end insert voluntary contributions.

Existing law authorizes taxpayers to contribute amounts in excess of their personal income tax liability for the support of specified funds. Existing law also has administrative provisions applicable to voluntary contributions.

This bill would include, as generally applicable administrative provisions, that any new or extended voluntary contribution begin insert that takes effect on or after January 2, 2017, end insert include the words “voluntary tax contribution” in the name of the fund, that the administering agency, as defined, include specified information about the fund on its Internet Web site, that the begin delete contributed funds end delete begin insert contributions made end insert be continuously appropriated begin insert from the fund end insert to the administering agency, and minimum contribution amount for the continuation of any voluntary tax contribution on the tax return form, and a generally applicable begin delete inoperative end delete begin insert repeal end insert date for a voluntary tax contribution.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

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

SECTION 1.  

Section 18873 is added to the Revenue and
Taxation Code, to read:

18873.  

Notwithstanding any other law, all of the following
requirements shall apply to any new voluntary tax contributions,
including an extension of begin insert any end insert existing voluntary tax contribution:

(a) The words “voluntary tax contribution” shall be included as
part of the name of the fund.

(b) (1) The administering agency’s Internet Web site shall report
the process for awarding money, the amount of money spent on
administration, and an itemization of how program funds were
awarded by the agency, including, but not limited to, information
regarding recipients of funds.

(2) An “administering agency” means the state agency or other
governmental entity, other than begin insert the end insert Franchise Tax Board and the
Controller, to which funds are allocated to accomplish the purposes
of the voluntary tax contribution designation.

(c) (1) Except as otherwise provided in paragraph (2) or where
another inoperative or repeal date is provided, the article
establishing the voluntary tax contribution shall remain in effect
only until January 1 of the seventh calendar year following the
first appearance of the contribution on the personal income tax
return, and is repealed as of December 1 of that year.

(2) The minimum contribution amount that must be received
for the fund to continue appearing on the tax return is two hundred
fifty thousand dollars ($250,000) for the second calendar year after
the first appearance of the fund on the personal income tax return
and each calendar year thereafter.

(d)  begin delete Funds contributed end delete begin insert Contributions made end insert pursuant to the begin delete tax
check-off end delete begin insert voluntary tax contribution end insert shall be continuously
appropriated begin insert from the fund end insert to the administering agency to be spent
as prescribed in the act in which the voluntary tax contribution is
enacted.

begin insert

(e) This section shall apply only to new voluntary tax
contributions, including an extension of any existing voluntary tax
contribution, that take effect on or after January 2, 2017.

end insert