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AB-2217 Golden State Coin Program.(2017-2018)

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Date Published: 04/05/2018 09:00 PM
AB2217:v97#DOCUMENT

Amended  IN  Assembly  April 05, 2018
Amended  IN  Assembly  March 20, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2217


Introduced by Assembly Member Burke

February 12, 2018


An act to amend Section 17053.88.5 of add Part 10.4 (commencing with Section 20400) to Division 2 of the Revenue and Taxation Code, relating to taxation. taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 2217, as amended, Burke. Personal income tax: credit: food banks: donated fresh fruits and vegetables. Golden State Coin Program.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill, for each taxable year beginning on or after January 1, 2019, and before January 1, 2024, would allow a credit in an amount equal to 80% of the price of Golden State Coins (GSCs) purchased by the taxpayer during the taxable year. The bill would authorize a qualified entity, defined to include an organization exempt from federal income taxation as an organization described in Section 501(c)(3) of the Internal Revenue Code that is in active status, as provided, a postsecondary educational institution that participates in the Cal Grant program, a California Community College, or a K–12 public school district located in the state, to purchase GSCs from the State Treasurer and sell those GSCs to taxpayers, as provided.
This bill would take effect immediately as a tax levy.

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including for taxable years beginning on or after January 1, 2017, and before January 1, 2022, a credit to a qualified taxpayer, defined as a person responsible for planting, managing, and harvesting a crop, in an amount equal to 15% of the qualified value, as defined, of fresh fruits or fresh vegetables donated to a food bank located in California. The Personal Income Tax Law requires the Franchise Tax Board to report to the Legislature on or before December 1, 2019, and each December 1 thereafter until the specified inoperative date, regarding the utilization of that credit.

This bill would require the Franchise Tax Board to report to the Legislature on or before July 1, 2019, and each July 1 thereafter until the specified inoperative date.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 Part 10.4 (commencing with Section 20400) is added to Division 2 of the Revenue and Taxation Code, to read:

PART 10.4. Golden State Coin Program

20400.
 This part shall be known, and may be cited, as the Golden State Coin Program.

20401.
 For purposes of this part:
(a) “GSC” means a Golden State Coin.
(b) “Qualified entity” means an organization exempt from federal income taxation as an organization described in Section 501(c)(3) of the Internal Revenue Code that is in active status as listed on the Secretary of State’s Internet Web site, a postsecondary educational institution that participates in the Cal Grant program, a community college located in the state, or a K–12 public school district located in the state.

20402.
 (a) On and after January 1, 2019, and before January, 1, 2024, a qualified entity may purchase GSCs from the State Treasurer at a cost of ninety cents ($0.90) per GSC.
(b) A qualified entity may sell GSCs to purchasers at a price of one dollar ($1.00) per GSC. The qualified entity shall provide the purchaser with documentation of the amount of GSCs sold to that purchaser.
(c) Revenues derived from the sale of GSCs shall supplement, and shall not supplant, any revenues received by the qualified entity for any other purpose.

20403.
 (a) (1) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, a credit in an amount as determined pursuant to paragraph (2) shall be allowed against the “net tax,” as defined in Section 17039, or “tax,” as defined in Section 23036, as applicable, to a taxpayer that purchased GSCs during the taxable year.
(2) The credit allowed by this section shall be in an amount equal to 80 percent of the costs paid or incurred by the taxpayer for the purchase of GSCs during the taxable year.
(b) The taxpayer shall provide the documentation provided by a qualified entity pursuant to subdivision (b) of Section 20402 at the request of the Franchise Tax Board.
(c) In the case where the credit allowed by this section exceeds the “net tax” or “tax,” as applicable, the excess may be carried over to reduce the “net tax” or “tax” in the following year, and succeeding six years, if necessary, until the credit is exhausted.
(d) A credit allowed by this section shall be in lieu of any charitable deduction otherwise allowed by this division.
(e) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.

20404.
 It is the intent of the Legislature to comply with Section 41.

20405.
 The Franchise Tax Board and the State Treasurer may prescribe any regulations that may be necessary or appropriate to implement the purposes of this part.

20406.
 (a) The State Treasurer shall not issue a physical object to a qualified entity pursuant to this part. If any physical object is issued it is commemorative in nature and not a coin or any other form of money.
(b) Any physical object sold by a qualified entity pursuant to this part is commemorative in nature and not a medium of exchange.

SEC. 2.

 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SECTION 1.Section 17053.88.5 of the Revenue and Taxation Code is amended to read:
17053.88.5.

(a)In the case of a qualified taxpayer who donates fresh fruits or fresh vegetables to a food bank located in California under Chapter 5 (commencing with Section 58501) of Part 1 of Division 21 of the Food and Agricultural Code, for taxable years beginning on or after January 1, 2017, and before January 1, 2022, there shall be allowed as a credit against the “net tax,” defined by Section 17039, an amount equal to 15 percent of the qualified value of those fresh fruits or fresh vegetables.

(b)For purposes of this section:

(1)“Qualified taxpayer” means the person responsible for planting a crop, managing the crop, and harvesting the crop from the land.

(2)(A)“Qualified value” shall be calculated by using the weighted average wholesale price based on the qualified taxpayer’s total like grade wholesale sales of the donated item sold within the calendar month of the qualified taxpayer’s donation.

(B)If no wholesale sales of the donated item have occurred in the calendar month of the qualified taxpayer’s donation, the “qualified value” shall be equal to the nearest regional wholesale market price for the calendar month of the donation based upon the same grade products as published by the United States Department of Agriculture’s Agricultural Marketing Service or its successor.

(c)If the credit allowed by this section is claimed by the qualified taxpayer, any deduction otherwise allowed under this part for that amount of the cost paid or incurred by the qualified taxpayer that is eligible for the credit shall be reduced by the amount of the credit provided in subdivision (a).

(d)The donor shall provide to the nonprofit organization the qualified value of the donated fresh fruits or fresh vegetables and information regarding the origin of where the donated fruits or vegetables were grown, and upon receipt of the donated fresh fruits or fresh vegetables, the nonprofit organization shall provide a certificate to the donor. The certificate shall contain a statement signed and dated by a person authorized by that organization that the product is donated under Chapter 5 (commencing with Section 58501) of Part 1 of Division 21 of the Food and Agricultural Code. The certificate shall also contain the type and quantity of product donated, the name of donor or donors, the name and address of the donee nonprofit organization, and, as provided by the donor, the qualified value of the donated fresh fruits or fresh vegetables and its origins. Upon the request of the Franchise Tax Board, the qualified taxpayer shall provide a copy of the certification to the Franchise Tax Board.

(e)The credit allowed by this section may be claimed only on a timely filed original return.

(f)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 for the six succeeding years if necessary, until the credit has been exhausted.

(g)In accordance with Section 41, the purpose of the credit is to increase fresh fruits and vegetable donations to food banks. Using the information available to the Franchise Tax Board from the certificates required under subdivision (d) and subdivision (d) of Section 23688.5, the Franchise Tax Board shall report to the Legislature on or before July 1, 2019, and each July 1 thereafter until the inoperative date specified in subdivision (h), regarding the utilization of the credit authorized by this section and Section 23688.5. The Franchise Tax Board shall also include in the report the qualified value of the fresh fruits and fresh vegetables donated, the county in which the products originated, and the month the donation was made.

(h)(1)A report required to be submitted pursuant to subdivision (g) shall be submitted in compliance with Section 9795 of the Government Code.

(2)The requirement for submitting a report imposed under subdivision (g) is inoperative on January 1, 2021, pursuant to Section 10231.5 of the Government Code.

(i)This section shall be repealed on December 1, 2022.