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AB-345 Personal income taxes: Disaster Victim Assistance Voluntary Tax Contribution Fund.(2017-2018)

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Date Published: 09/08/2017 09:00 PM
AB345:v94#DOCUMENT

Amended  IN  Senate  September 08, 2017
Amended  IN  Senate  July 17, 2017
Amended  IN  Senate  July 05, 2017
Amended  IN  Assembly  May 16, 2017
Amended  IN  Assembly  March 21, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 345


Introduced by Assembly Member Ridley-Thomas

February 08, 2017


An act to amend Section 36900 of, and to amend, add, and repeal Sections 25845, 38773.1, and 38773.5 of, the Government Code, relating to local government. An act to add and repeal Article 25 (commencing with Section 18925) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, relating to taxation, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 345, as amended, Ridley-Thomas. Municipal code violations. Personal income taxes: Disaster Victim Assistance Voluntary Tax Contribution Fund.
Existing law authorizes an individual to contribute amounts in excess of his or her tax liability for the support of specified funds. Under existing law, there are general administrative provisions applicable to these voluntary contributions, which, among other things, provide for the disbursement of contributions following repeal of the fund provisions and require undesignated funds to be transferred to the General Fund.
Existing law also provides that when establishing these voluntary tax contribution funds the words “voluntary tax contribution” be included in the name of the fund, that the administering agency comply with specified Internet Web site reporting requirements, that the fund provisions remain in effect only until January 1 of the 7th calendar year following the first appearance of the voluntary tax contribution on the personal income tax return, that the required calendar year minimum contribution amount for the fund to continue appearing on the return is $250,000, and that the contributions be continuously appropriated from the fund to the administering entity.
This bill, beginning in 2018, would allow an individual to designate on his or her tax return that a specified amount in excess of his or her tax liability be transferred to the Disaster Victim Assistance Voluntary Tax Contribution Fund, which would be created by this bill. The bill would conform with those aforementioned requirements by continuously appropriating those funds to the Franchise Tax Board and the Controller in connection with their duties pursuant to these provisions and to the Office of Emergency Services for distribution to specified nonprofit organizations to only assist victims of natural disasters in the United States, providing that the fund provisions remain in effect only until January 1, 2025, and repealing the provisions as of that date, unless earlier repealed because annual contributions to the fund do not equal or exceed an unadjusted $250,000 minimum contribution amount, and requiring the Office of Emergency Services to comply with those Internet Web site reporting requirements. By continuously appropriating these funds, the bill would make an appropriation.

(1)Existing law authorizes the legislative body of a city or county to establish a procedure to use a nuisance abatement lien or a special assessment to collect abatement costs and related administrative costs.

This bill would authorize, until January 1, 2023, the legislative body of a city or county to also collect fines related to the nuisance abatement using a nuisance abatement lien or a special assessment.

(2)Existing law authorizes the legislative body of a local agency to make, by ordinance, any violation of an ordinance subject to an administrative fine or penalty and limits the maximum fine or penalty amounts for infractions to $100 for the first violation, $200 for a 2nd violation of the same ordinance within one year of the first violation, and $500 for each additional violation of the same ordinance within one year of the first violation. For violations of city or county building and safety codes determined to be an infraction, existing law limits the amount of the fine to $100 for a first violation, $500 for a 2nd violation of the same ordinance within one year, and $1,000 for each additional violation of the same ordinance within one year of the first violation.

The bill would, for violations of a city building and safety code determined to be an infraction, increase the amounts of the fines to $134 for a first violation, $668 for a 2nd violation of the same ordinance within one year, and $1,336 for each additional violation of the same ordinance within one year of the first violation.

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

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


SECTION 1.

 Article 25 (commencing with Section 18925) is added to Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, to read:
Article  25. Disaster Victim Assistance Voluntary Tax Contribution Fund

18925.
 (a) An individual may designate on the tax return that a contribution in excess of the tax liability, if any, be made to the Disaster Victim Assistance Voluntary Tax Contribution Fund established by Section 18926. That designation is to be used as a voluntary contribution on the tax return.
(b) The contributions shall be in full dollar amounts and may be made individually by each signatory on a joint return.
(c) A designation made under subdivision (a) shall be made for a taxable year on the original return for that taxable year, and once made shall be irrevocable. If payments and credits reported on the return, together with any other credits associated with the individual’s account, do not exceed the individual’s liability, if any, the return shall be treated as though no designation has been made.
(d) The Franchise Tax Board shall revise the form of the return for taxable years 2017 to 2023, inclusive, to include a space labeled the “Disaster Victim Assistance Voluntary Tax Contribution Fund” to allow for the designation permitted under subdivision (a). The form shall also include in the instructions information that the contribution may be in the amount of one dollar ($1) or more and that the contribution shall be used to assist victims of natural disasters in the United States.
(e) A deduction shall be allowed under Article 6 (commencing with Section 17201) of Chapter 3 of Part 10 for any contribution made pursuant to subdivision (a).

18926.
 There is hereby established in the State Treasury the Disaster Victim Assistance Voluntary Tax Contribution Fund to receive contributions made pursuant to Section 18925. The Franchise Tax Board shall notify the Controller of both the amount of money paid by individuals in excess of their tax liability and the amount of refund money that individuals have designated pursuant to Section 18925 to be transferred to the Disaster Victim Assistance Voluntary Tax Contribution Fund. The Controller shall transfer from the Personal Income Tax Fund to the Disaster Victim Assistance Voluntary Tax Contribution Fund an amount not in excess of the sum of the amounts designated by individuals pursuant to Section 18925 for payment into that fund.

18927.
 (a) Notwithstanding Section 13340 of the Government Code, all money designated under the Disaster Victim Assistance Voluntary Tax Contribution Fund space on a tax return and transferred to the Disaster Victim Assistance Voluntary Tax Contribution Fund pursuant to Section 18926 shall be continuously appropriated and allocated as follows:
(1) To the Franchise Tax Board and the Controller for reimbursement of all costs incurred by the Franchise Tax Board and the Controller in connection with their duties under this article.
(2) To the Office of Emergency Services for the distribution of funds to nonprofit organizations to only assist victims of natural disasters in the United States. Any nonprofit organization receiving funds shall be in active status, and shall be exempt from federal income taxation as an organization described in Section 501(c)(3) of the Internal Revenue Code. The Office of Emergency Services shall award the funds and be responsible for overseeing the grant program.
(b) For the purposes of this article, “natural disaster” means either of the following:
(1) A federally declared disaster for purposes of Section 165 (i) of the Internal Revenue Code.
(2) A gubernatorially declared state of emergency issued pursuant to Section 8625 of the Government Code.
(c) In the first 12 months of awarding funds, to the extent practicable, the Office of Emergency Services shall give preference to nonprofit organizations assisting the victims of Hurricane Harvey and its aftermath.
(d) A nonprofit organization shall not use grant moneys awarded pursuant to this section for its administrative costs.
(e) The Office of Emergency Services shall use no more than 5 percent of moneys received pursuant to subdivision (a) for its administrative costs.
(f) The Office of Emergency Services shall comply with the Internet Web site reporting requirements described in Section 18873.

18928.
 (a) Except as otherwise provided in subdivision (b), this article shall remain in effect only until January 1, 2025, and is repealed as of that date.
(b) (1) By September 1 of the 2018 calendar year and each subsequent calendar year that the Disaster Victim Assistance Voluntary Tax Contribution Fund appears on the tax return, the Franchise Tax Board shall determine whether the amount of contributions estimated to be received during the calendar year will equal or exceed the minimum contribution amount for the calendar year pursuant to paragraph (3). The Franchise Tax Board shall estimate the amount of contributions to be received by using the actual amounts received and an estimate of the contributions that will be received by the end of that calendar year.
(2) If the Franchise Tax Board determines that the amount of the contributions estimated to be received during a calendar year will not at least equal the minimum contribution amount for the calendar year, this article is inoperative with respect to taxable years beginning on or after January 1 of that calendar year, and shall be repealed on December 1 of that calendar year.
(3) For purposes of this section, the minimum contribution amount for a calendar year means two hundred fifty thousand dollars ($250,000).