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AB-279 Personal income tax: credit: food banks: donated fresh fruits and vegetables.(2019-2020)

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Date Published: 03/20/2019 09:00 PM
AB279:v98#DOCUMENT

Amended  IN  Assembly  March 20, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 279


Introduced by Assembly Member Burke

January 28, 2019


An act to amend Section 17001 17053.88.5 of the Revenue and Taxation Code, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


AB 279, as amended, Burke. Personal income taxes. tax: credit: food banks: donated fresh fruits and vegetables.
The Personal Income Tax Law imposes taxes on taxable income, as provided. 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 January 1, 2021, regarding the utilization of that credit.
This bill would make a nonsubstantive change to the provision that names that law. require the Franchise Tax Board to provide the report to the Legislature on or before July 1, 2020.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


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 December 1, 2019, and each December 1 thereafter until the inoperative date specified in subdivision (h), on or before July 1, 2020, 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.

SECTION 1.Section 17001 of the Revenue and Taxation Code is amended to read:
17001.

This part shall be known and may be cited as the “Personal Income Tax Law.”