Bill Text

Bill Information


Add To My Favorites | print page

SB-918 Taxation: deposits: qualified tuition programs.(2007-2008)

SHARE THIS: share this bill in Facebook share this bill in Twitter
SB918:v96#DOCUMENT

Amended  IN  Senate  June 04, 2007
Amended  IN  Senate  May 02, 2007
Amended  IN  Senate  March 29, 2007

CALIFORNIA LEGISLATURE— 2007–2008 REGULAR SESSION

Senate Bill
No. 918

Introduced  by  Senator Oropeza

February 23, 2007

An act to add Chapter 3.5 (commencing with Section 18900) to Part 10.2 of Division 2 of the Revenue and Taxation Code, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


SB 918, as amended, Oropeza. Taxation: deposits: qualified tuition programs.
The Personal Income Tax Law imposes taxes on taxable income which are administered by the Franchise Tax Board. Existing law authorizes taxpayers to contribute amounts in excess of their tax liability for the support of specified funds.
This bill would provide that a taxpayer may designate on his or her tax return that an amount in excess of tax liability, as specified, be deposited by the Franchise Tax Board into a qualified tuition program account, as specified. This bill would require the Franchise Tax Board to revise the form of the return to include the necessary information that will allow a taxpayer to make this designation, as provided.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Chapter 3.5 (commencing with Section 18900) is added to Part 10.2 of Division 2 of the Revenue and Taxation Code, to read:
CHAPTER  3.5. Directed Deposits

18900.
 (a) A taxpayer may designate on the tax return that an amount in excess of tax liability, if any, be deposited to the credit of the taxpayer’s qualified tuition program, as defined in Section 529 of the Internal Revenue Code, including, but not limited to, Scholarshare.
(b) The designation shall be allowed only if the designation is a full dollar amount that is in excess of one dollar ($1).
(c) The Franchise Tax Board shall revise the form of the return to include a space to allow the designation permitted under subdivision (a), and any other information that may be necessary to carry out this section, including, but not limited to, the following:
(1) The amount of the designation.
(2) The account number and named beneficiary of the qualified tuition program.
(d) If the payments and the designation reported on the return do not exceed the tax liability, if any, shown thereon, the tax return shall be treated as though the designation had not been made.

(e)If the taxpayer designates a deposit to more than one qualified tuition program and the amount available is insufficient to satisfy the total amount designated, the deposits shall be allocated among the designated accounts on a pro rata basis.

(e) The designation authorized under subdivision (a) shall be limited to one qualified tuition program.

18901.
 If a taxpayer designates a voluntary contribution pursuant to Chapter 3 (commencing with Section 18701) and a directed deposit pursuant to this chapter, and the amount in excess of tax liability is less than the total amount designated, the amount in excess of tax liability shall be allocated among the designees on a pro rata basis.