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AB-1356 Higher Education Assistance Fund: personal income taxes: additional tax.(2017-2018)

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Date Published: 04/07/2017 04:00 AM
AB1356:v97#DOCUMENT

Amended  IN  Assembly  April 06, 2017
Amended  IN  Assembly  April 03, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1356


Introduced by Assembly Member Eggman Members Eggman, Bonta, and Weber
(Coauthors: Assembly Members Frazier, Cristina Garcia, Eduardo Garcia, and Nazarian Jones-Sawyer, Nazarian, Quirk, and Mark Stone)
(Coauthor: Senator Dodd)

February 17, 2017


An act to add Part 71 (commencing with Section 102000) to Division 14 of Title 3 of the Education Code, and to add Section 17043.5 to the Revenue and Taxation Code, relating to higher education, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 1356, as amended, Eggman. Higher Education Assistance Fund: personal income taxes: additional tax.
The Personal Income Tax Law imposes taxes based upon taxable income at specified rates.
This bill would, for taxable years beginning on or after January 1, 2018, 2019, impose an additional tax of 1% on income that exceeds $1,000,000, as provided. The bill would deposit the revenues derived from this tax into the Higher Education Assistance Fund, a continuously appropriated fund established by this bill, for the purposes of funding student financial assistance for tuition and fees required of specified students enrolled at the University of California, the California State University, and California community colleges. the California Community Colleges.
This bill would become operative only if ACA ____ 13 of the 2016–17 2017–18 Regular Session is approved by the voters. voters and becomes operative.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Part 71 (commencing with Section 102000) is added to Division 14 of Title 3 of the Education Code, to read:

PART 71. Higher Education Assistance Fund

102000.
 (a) The Higher Education Assistance Fund is hereby created in the State Treasury to receive all revenues, net of refunds, derived from the tax imposed under Section 17043.5 of the Revenue and Taxation Code. Notwithstanding Section 13340 of the Government Code, moneys in the fund are hereby continuously appropriated to the Controller without regard to fiscal years for allocation for the funding of student financial assistance for tuition and fees required of in-state, undergraduate students enrolled at the University of California, the California State University, and California community colleges. the California Community Colleges.
(b) Nothing in the establishment of this fund shall be construed to modify the obligation of schools and universities to provide student financial assistance.
(c) Nothing in this act section shall be construed to modify or reduce the existing authority or responsibility of the California Community Colleges Chancellor’s Office or the Student Aid Commission.
(d) The funding established pursuant to this act section shall be utilized to expand student financial assistance. These funds shall not be used to supplant existing state or federal funds utilized to provide student financial assistance.

SEC. 2.

 Section 17043.5 is added to the Revenue and Taxation Code, to read:

17043.5.
 (a) For each taxable year beginning on or after January 1, 2018, 2019, in addition to any other taxes imposed by this part, a tax shall be imposed at the rate of 1 percent on that portion of a taxpayer’s taxable income in excess of one million dollars ($1,000,000).
(b) For purposes of applying Part 10.2 (commencing with Section 18401) of Division 2, the tax imposed under this section shall be treated as if imposed under Section 17041.
(c) The following shall not apply to the tax imposed by this section:
(1) The provisions of Section 17039, relating to the allowance of credits.
(2) The provisions of Section 17041, relating to filing status and recomputation of the income tax brackets.
(3) The provisions of Section 17045, relating to joint returns.

SEC. 3.

 The provisions of this act shall only become operative if Assembly Constitutional Amendment ____ 13 of the 2016–17 2017–18 Regular Session is approved by the voters. voters and becomes operative.