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AB-287 Income and bank and corporation taxes: credits: donation of agricultural products.(1999-2000)

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Amended  IN  Assembly  March 10, 1999
Amended  IN  Assembly  April 22, 1999

CALIFORNIA LEGISLATURE— 1999–2000 REGULAR SESSION

Assembly Bill
No. 287

Introduced  by  Assembly Member Strickland, Reyes
 (Coauthor(s): Assembly Member Aroner, Battin, Briggs, Campbell, Cardenas, Cardoza, Cox, Florez, Leach, Maldonado, Mazzoni, Oller, Pescetti, Thomson, Zettel)
 (Coauthor(s): Senator O'Connell)

February 04, 1999

An act to add and repeal Sections 17053.20 and 23620 to of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 287, as amended, Strickland. Income and bank and corporation taxes: credits: donation of agricultural products.
The Personal Income Tax Law and the Bank and Corporation Tax Law authorize various credits against the taxes imposed by those laws.
This bill would provide a credit in an amount equal to 10% of the fair market value at wholesale of agricultural products donated by a taxpayer to a nonprofit charitable organization or food bank.
The provisions of the bill would be repealed on December 31, 2005.
This bill would take effect immediately as a tax levy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 17053.20 is added to the Revenue and Taxation Code, to read:

17053.20.
 (a) There shall be allowed as a credit against the “net tax,” as defined by Section 17039, an amount equal to 10 percent of the fair market value at wholesale of agricultural products donated by a taxpayer during the taxable year to a nonprofit charitable organization or food bank.
(b) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following year, and succeeding years if necessary, until the credit has been exhausted.
(c) A taxpayer shall provide a receipt from the recipient organization with the type and quantity of product donated, name or names of the donor or donors, and the name and address of the recipient.
(d) No taxpayer shall be allowed to claim the credit pursuant to this section and claim a deduction from his or her taxes for charitable purposes for amounts donated pursuant to subdivision (a).
(e) This section shall remain in effect only until December 31, 2005, and as of that date is repealed unless a later enacted statute deletes or extends that date.

SEC. 2.

 Section 23620 is added to the Revenue and Taxation Code, to read:

23620.
 (a) There shall be allowed as a credit against the “tax,” as defined by Section 23036, an amount equal to 10 percent of the fair market value at wholesale of agricultural products donated by a taxpayer during the income year to a nonprofit charitable organization or food bank.
(b) In the case where the credit allowed by this section exceeds the “tax,” the excess may be carried over to reduce the “tax” in the following year, and succeeding years if necessary, until the credit has been exhausted.

(c) A taxpayer shall provide a receipt from the recipient organization with the type and quantity of product donated, name or names of the donor or donors, and the name and address of the recipient.
(d) No taxpayer shall be allowed to claim the credit pursuant to this section and claim a deduction from its taxes for charitable purposes for amount donated pursuant to subdivision (a).
(e) This section shall remain in effect only until December 31, 2005, and as of that date is repealed, unless a later enacted statute deletes or extends that date.

SEC. 3.

 The Franchise Tax Board shall report to the Legislature on or before November 30, 2004, on the number of credits claimed annually pursuant to Sections 17053.20 and 23620 of the Revenue and Taxation Code.

SEC. 4.

 This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.