Today's Law As Amended


Add To My Favorites | print page

SB-918 Taxation: deposits: qualified tuition programs.(2007-2008)



As Amends the Law Today


SECTION 1.

 Chapter 3.5 (commencing with Section 18900) is added to Part 10.2 of Division 2 of the Revenue and Taxation Code, to read:

CHAPTER  3.5. Directed Deposits
18900.
 (a) A taxpayer may designate on the tax return that an amount in excess of tax liability, if any, be deposited to the credit of the taxpayer’s qualified tuition program, as defined in Section 529 of the Internal Revenue Code, including, but not limited to, Scholarshare.
(b) The designation shall be allowed only if the designation is a full dollar amount that is in excess of one dollar ($1).
(c) The Franchise Tax Board shall revise the form of the return to include a space to allow the designation permitted under subdivision (a), and any other information that may be necessary to carry out this section, including, but not limited to, the following:
(1) The amount of the designation.
(2) The account number and named beneficiary of the qualified tuition program.
(d) If the payments and the designation reported on the return do not exceed the tax liability, if any, shown thereon, the tax return shall be treated as though the designation had not been made.
(e) The designation authorized under subdivision (a) shall be limited to one qualified tuition program.
18901.
 If a taxpayer designates a voluntary contribution pursuant to Chapter 3 (commencing with Section 18701) and a directed deposit pursuant to this chapter, and the amount in excess of tax liability is less than the total amount designated, the amount in excess of tax liability shall be allocated among the designees on a pro rata basis.