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AB-65 California Universal Basic Income Program: Personal Income Tax.(2021-2022)

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Date Published: 04/13/2021 09:00 PM
AB65:v97#DOCUMENT

Amended  IN  Assembly  April 13, 2021
Amended  IN  Assembly  March 18, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 65

Introduced by Assembly Member Low
(Coauthor: Senator Wiener)

December 07, 2020

An act to add Section 17044 to, and to add Chapter 2.5 (commencing with Section 17065) to Part 10 of Division 2 of, of the Revenue and Taxation Code, relating to public social services, and making an appropriation therefor. services.


LEGISLATIVE COUNSEL'S DIGEST


AB 65, as amended, Low. California Universal Basic Income Program: Personal Income Tax.
Existing law establishes various economic opportunity and public social services programs, including the California Work Opportunity and Responsibility to Kids (CalWORKs) program, under which each county provides cash assistance and other benefits to qualified low-income families and individuals, and the CalFresh program, under which supplemental nutrition assistance benefits allocated to the state by the federal government are distributed to eligible individuals by each county.
Existing law establishes the Franchise Tax Board in the Government Operations Agency to, among other things, administer state personal income taxes and corporation franchise and income taxes.
This bill would require the Franchise Tax Board to administer the California Universal Basic Income (CalUBI) Program, under which a California resident who is 18 years of age or older and who meets specified requirements, would receive a universal basic income of $1,000 per month. The bill would require, among other things, that the resident have has lived in the state for at least the last 3 consecutive years and that the resident’s income not exceed 200% of the median per capita income for the resident’s current county of residence, as determined by the United States Census Bureau. The bill would define universal basic income to mean unconditional cash payments of equal amounts issued monthly to individual residents of California with the intention of ensuring the economic security of recipients. The bill would authorize the Franchise Tax Board to adopt regulations to implement the program. The bill would prohibit the Franchise Tax Board and the Controller from using any part of the CalUBI payments to offset tax liabilities or delinquent accounts, as specified. The bill would specify that its provisions are to be operative only for taxable years in which resources are made available through an appropriation from the Legislature.

The Personal Income Tax Law imposes a tax on individual taxpayers measured by the taxpayer’s taxable income for the taxable year.

This bill would, for taxable years beginning on or after January 1, 2022, impose a tax of 1% on that portion of a taxpayer’s income in excess of $2,000,000. The bill would establish the continuously appropriated Universal Basic Income Fund in the State Treasury for the purposes of the CalUBI program, and would deposit the estimated revenue from the additional tax for each fiscal year into that fund. By establishing a continuously appropriated fund, this bill would make an appropriation.

This bill would state that its provisions are severable.

This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature.

Vote: TWO_THIRDSMAJORITY   Appropriation: YESNO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.Section 17044 is added to the Revenue and Taxation Code, to read:
17044.

(a)For each taxable year beginning on or after January 1, 2022, in addition to any other taxes imposed by this part, an additional tax shall be imposed at the rate of 1 percent on that portion of a taxpayer’s taxable income in excess of two million dollars ($2,000,000).

(b)For purposes of applying Part 10.2 (commencing with Section 18401) of Division 2, the tax imposed under this section shall be treated as if imposed under Section 17041.

(c)The following shall not apply to the tax imposed by this section:

(1)The provisions of Section 17039, relating to the allowance of credits.

(2)The provisions of Section 17041, relating to filing status and recomputation of the income tax brackets.

(3)The provisions of Section 17045, relating to joint returns.

SEC. 2.SECTION 1.

 Chapter 2.5 (commencing with Section 17065) is added to Part 10 of Division 2 of the Revenue and Taxation Code, to read:
CHAPTER  2.5. California Universal Basic Income

17065.
 (a) This chapter is known and may be cited as the California Universal Basic Income Act.
(b) The provisions of this chapter shall only be operative for taxable years for which resources are made available through an appropriation by the Legislature.

17066.
 (a)The Universal Basic Income Fund is hereby created in the State Treasury. The fund shall be administered by the Franchise Tax Board. Notwithstanding Section 13340 of the Government Code, all moneys in the fund are continuously appropriated, without regard to fiscal years, The Franchise Tax Board may expend moneys deposited into the fund, upon appropriation by the Legislature, for the purposes of this chapter.

(b)The estimated revenue from the additional tax imposed under Section 17044 for the applicable fiscal year shall be deposited in the Universal Basic Income Fund.

17067.
 (a) The Franchise Tax Board shall administer the California Universal Basic Income (CalUBI) Program. Each eligible recipient shall receive a universal basic income of one thousand dollars ($1,000) per month, payable from the Universal Basic Income Fund.
(b) For purposes of this chapter the following definitions shall apply:
(1) “Eligible recipient” means an individual who satisfies each of the following:
(A) Is a resident, and has been a resident for the three most recent consecutive taxable years.
(B) Is at least 18 years of age.
(C) Is not currently incarcerated in a county jail or the state prison.
(D) Reported gross income that does not exceed 200 percent of the median per capita income for the eligible recipient’s current county of residence, as determined by the United States Census Bureau.
(2) “Universal basic income” means unconditional cash payments of equal amounts issued monthly to individual eligible recipients with the intention of ensuring the economic security of recipients.

17068.
 The Franchise Tax Board may prescribe any regulations necessary or appropriate to carry out the purposes of this chapter.

17069.
 (a) Notwithstanding any other provision of this part or Part 10.2 (commencing with Section 18401), the Franchise Tax Board shall not use any part of any CalUBI payment authorized by Section 17067 to offset any liabilities owed by an eligible recipient.
(b) Notwithstanding any provision of Article 2 (commencing with Section 12410) of Chapter 5 of Part 2 of Division 3 of Title 2 of the Government Code, the Controller shall not offset delinquent accounts against the CalUBI payments authorized by Section 17067.

SEC. 3.SEC. 2.

 The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.