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SB-1231 Tax rebate.(2017-2018)

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Date Published: 02/15/2018 09:00 PM
SB1231:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 1231


Introduced by Senator Gaines
(Coauthor: Senator Vidak)

February 15, 2018


An act to add Section 17131.8 to, and to add Chapter 11 (commencing with Section 19810) to Part 10.2 of Division 2 of, the Revenue and Taxation Code, relating to tax rebates, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


SB 1231, as introduced, Gaines. Tax rebate.
Existing law contains various assistance programs, including programs that provide for financial assistance.
This bill would require the Franchise Tax Board, on or before ____ to provide a tax rebate in a qualified amount, as defined, to individuals who filed a return for the 2016 taxable year. The bill would appropriate $6,000,000,000 to the Franchise Tax Board for administrative costs related to this program and to provide the tax rebates, as provided.
The Personal Income Tax Law imposes a tax on individual taxpayers measured by the taxpayer’s taxable income for the taxable year, but excludes certain items of income from the computation of tax.
This bill would exclude from gross income any tax rebate received by a taxpayer pursuant to the above provisions.
This bill would make a legislative finding and declaration that the tax rebate program serves a public purpose and does not constitute a prohibited gift of public funds.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 17131.8 is added to the Revenue and Taxation Code, to read:

17131.8.
 Gross income does not include any tax rebate received by a taxpayer pursuant to Chapter 11 (commencing with Section 19810) of Part 10.2.

SEC. 2.

 Chapter 11 (commencing with Section 19810) is added to Part 10.2 of Division 2 of the Revenue and Taxation Code, to read:
CHAPTER  11. Tax Rebates

19810.
 (a) On or before ____, the Franchise Tax Board shall issue tax rebates to taxpayers as follows:
(1) For taxpayers who filed a tax return for the 2016 taxable year and who filed as married individuals filing a joint return, filed a head of household return, or filed as a surviving spouse, twice the qualified amount.
(2) For a taxpayer who filed a tax return for the 2016 taxable year and who filed as a single taxpayer or filed as a married individual filing a separate return, the qualified amount.
(b) The Franchise Tax Board shall provide a taxpayer with the tax rebate required by this section in the same manner, where applicable, as any refund provided to that taxpayer.
(c) The qualified amount shall be determined by dividing six billion dollars ($6,000,000,000) by the number of tax returns filed by individuals pursuant to Part 10 (commencing with Section 17001) for the 2016 taxable year.

19811.
 (a) The Franchise Tax Board may adopt regulations necessary or appropriate to carry out the purposes of this chapter.
(b) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this chapter.

19812.
 The sum of six billion dollars ($6,000,000,000) is hereby appropriated from the General Fund to the Franchise Tax Board for the following purposes:
(a) ($0.00) for administrative costs associated with this chapter.
(b) The remainder for the tax rebates required by Section 19810.

SEC. 3.

 The Legislature finds and declares that the tax rebate program described in this act, serves a public purpose to aid hard working Californians who continue to struggle to make ends meet and does not constitute a prohibited gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.