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AB-647 Personal income taxes: credit: full-time community college students.(2017-2018)

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Date Published: 03/22/2017 04:00 AM
AB647:v98#DOCUMENT

Amended  IN  Assembly  March 21, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 647


Introduced by Assembly Member Reyes

February 14, 2017


An act to amend Section 12977 of add Section 17052.3 to the Revenue and Taxation, Taxation Code, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


AB 647, as amended, Reyes. Insurance taxation. Personal income taxes: credit: full-time community college students.
The Personal Income Tax Law allows various credits against the taxes imposed by that law.
This bill, for each taxable year beginning on or after January 1, 2018, would allow a credit under the Personal Income Tax Law in an amount equal to the fees and other expenses paid or incurred during the taxable year, as does not exceed $2,000, for the enrollment of a full-time community college student for whom the credit was not claimed in any prior taxable year, as specified. The bill would also allow a payment in excess of that credit amount upon appropriation by the Legislature. The bill would require a taxpayer claiming the credit to submit with his or her return a copy of the student’s transcript evidencing completion of an academic year of full-time enrollment in a California community college. The bill would make related findings and declarations regarding the specific goals, purposes, and objectives, performance indicators, and data collection requirements for the credit.

Existing law imposes various taxes, including a tax at a specified rate on the gross premiums of an insurer, as defined, administered in part by the State Board of Equalization. Existing law provides that, if the board determines that any tax, interest, or penalty has been paid more than once or has been erroneously or illegally collected or computed, the board shall set forth that fact in its records of the board, certify the amount of the taxes, interest, or penalties collected in excess of what was legally due, and from whom they were collected or by whom paid and certify the excess to the Controller for credit or refund.

This bill would make a nonsubstantive change to that provision.

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

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


SECTION 1.

 Section 17052.3 is added to the Revenue and Taxation Code, to read:

17052.3.
 (a) For each taxable year beginning on or after January 1, 2018, there shall be allowed as a credit against the “net tax,” as defined by Section 17039, to a qualified taxpayer an amount equal to the qualified community college expenses paid or incurred during the taxable year.
(b) For purposes of this section:
(1) “Qualified community college expenses” means fees and other expenses paid or incurred for the enrollment or attendance of a qualified full-time community college student in a California community college as does not exceed two thousand dollars ($2,000) per qualified full-time community college student.
(2) “Qualified full-time community college student” means an individual for whom both of the following apply:
(A) The individual completed an academic year of full-time enrollment in a California community college that concluded during the taxable year.
(B) The individual has not been considered a qualified full-time community college student for the purposes of the credit allowed by this section for any prior taxable year.
(3) “Qualified taxpayer” means a taxpayer who is a qualified full-time community college student or who has a dependent who is a qualified full-time community college student.
(c) A qualified taxpayer shall submit with his or her return, a copy of the transcript of the qualified full-time community college student evidencing completion of an academic year of full-time enrollment in a California community college.
(d) If the amount allowable as a credit under this section exceeds the tax liability computed under this part for the taxable year, the excess shall be credited against other amounts due, if any, and the balance, if any, shall, upon appropriation by the Legislature, be paid to the qualified taxpayer.

SEC. 2.

 For purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares that the following applies to Section 17052.3 of the Revenue and Taxation Code:
(a) The specific goals, purposes, and objectives of the tax credit are to reduce costs for students attending California community colleges, incentivize community college students to pursue full-time enrollment, and increase transfers of community college students to the California State University or the University of California.
(b) The performance indicators for the tax credit are decreasing costs of students attending community colleges, increases in the ratio of full-time community college students to part-time community college students, and increases in the rate of transfer of community college students to the California State University or the University of California.
(c) The specific data to be used to determine whether the tax credit is meeting the goals described in subdivision (a) are the average per-student cost of attending a community college, the ratio of full-time community college students to part-time community college students, and the rate of transfer of community college students to the California State University or the University of California for each calendar year. The baseline measurements are those specific data for the 2017 calendar year. The Legislative Analyst’s Office shall collect and remit the data to the Legislature.
SECTION 1.Section 12977 of the Revenue and Taxation Code is amended to read:
12977.

(a)If the board determines that any tax, interest, or penalty has been paid more than once or has been erroneously or illegally collected or computed, the board shall set forth that fact in its records of the board, certify the amount of the taxes, interest, or penalties collected in excess of what was legally due, and from whom they were collected or by whom paid and certify the excess to the Controller for credit or refund.

(b)The Controller upon receipt of a certification for credit or refund shall credit the excess on any amounts then due and payable from the insurer or surplus line broker under this part and refund the balance.

(c)Any proposed determination by the board pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to the effective date of that determination.

(d)This section shall become operative on July 1, 2013.