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SB-1752 Income taxes: deduction: educational expenses.(1999-2000)

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SB1752:v97#DOCUMENT

Amended  IN  Senate  March 28, 2000
Amended  IN  Senate  April 10, 2000

CALIFORNIA LEGISLATURE— 1999–2000 REGULAR SESSION

Senate Bill
No. 1752

Introduced  by  Senator Poochigian
 (Coauthor(s): Senator Costa, Haynes, Knight, Lewis, McPherson, Morrow)
 (Coauthor(s): Assembly Member Aanestad, Battin, Bock, Brewer, Briggs, Campbell, Cox, Cunneen, Dickerson, Leach, Leonard, Oller, Robert Pacheco, Rod Pacheco, Pescetti, Runner, Zettel)

February 23, 2000

An act to add and repeal Section 17204 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


SB 1752, as amended, Poochigian. Income taxes: deduction: educational expenses.
The Personal Income Tax Law authorizes various deductions in computing income that is subject to taxation.
This bill would, for each taxable year beginning on or after January 1, 2000, and before January 1, 2005, authorize a deduction under that law, in an amount not to exceed $500 and in accordance with certain definitions and limitations, for the unreimbursed qualifying classroom educational expenses paid or incurred by a teacher at a qualifying educational institution. This bill would provide that the amounts allowed as a deduction shall not diminish specified funding for education.
The bill would require the Franchise Tax Board to report on the use of this deduction.
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 17204 is added to the Revenue and Taxation Code, to read:

17204.
 (a) For each taxable year beginning on or after January 1, 2000, and before January 1, 2005, there shall be allowed as a deduction the amount of unreimbursed qualifying classroom educational expenses, not to exceed five hundred dollars ($500), that are paid or incurred during the taxable year by any qualified teacher at a qualifying educational institution.
(b) As used in this section, the following terms have the following definitions:
(1) “Qualifying classroom educational expenses” means the costs paid or incurred by a teacher for instructional materials that comply with subdivision (c) and that meet both of the following requirements:
(A) The instructional materials are used at a qualifying educational institution for the teaching of any subject legally and commonly taught in a qualifying educational institution and are not purchased for the personal use of the qualified teacher.
(B) The instructional materials are certified in writing by the chief administrator of the qualifying educational institution as being used at that institution by the qualified teacher for the teaching of any subject legally and commonly taught. The Franchise Tax Board shall prescribe a certification form for purposes of this subparagraph.
(2) “Qualified teacher” means a credentialed, full-time teacher who works the majority of his or her working hours as a classroom instructor in a qualifying educational institution located in California.
(3) “Qualifying educational institution” means any public elementary, secondary, or vocational-technical school in this state providing education for kindergarten, grades 1 to 12, inclusive, or any part thereof, operated by state or local governmental entities.
(c) All instructional materials, any portion of the costs of which are the subject of a deduction allowed pursuant to this section, are the property of the qualifying educational institution at which they are used, and no instructional materials, any portion of the costs of which are claimed as a deduction pursuant to this section, shall violate any provision of the Education Code or any rule or policy of the school board governing the qualifying educational institution at which those materials are used.
(d) This section shall remain in effect only until December 1, 2005, and as of that date is repealed.

SEC. 2.

 Notwithstanding any other law, when making the calculation as required by subdivision (b) of Section 8 of Article XVI of the California Constitution, “General Fund revenues that may be appropriated pursuant to Article XIII B,” as used in paragraphs (1) and (3) of subdivision (b) of Section 8 of Article XVI of the California Constitution, shall include the amounts of the deduction allowed under Section 17204 of the Revenue and Taxation Code. In the fiscal year following enactment of Section 17204 of the Revenue and Taxation Code and for each fiscal year thereafter, the Director of Finance shall adjust the amount required to be allocated to school districts and community college districts to ensure that Section 17204 of the Revenue and Taxation Code does not diminish the funding level for school districts and community college districts to a funding level below that required absent the deduction authorized by Section 17204 of the Revenue and Taxation Code.

SEC. 3.

 The Franchise Tax Board shall report to the Department of Finance, by July 1 of the year following the filing year, the amount of deductions allowed under Section 17204 of the Revenue and Taxation Code claimed in taxable years ending in the preceding calendar year.

SEC. 4.

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