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AB-2955 Income taxes: designations: administration: Veterans Memorial Account.(1995-1996)



Current Version: 09/27/96 - Chaptered

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AB2955:v95#DOCUMENT

Assembly Bill No. 2955
CHAPTER 960

An act to amend Section 18731 of, and to add Article 16 (commencing with Section 18871) to Chapter 3 of Part 10.2 of Division 2 of, the Revenue and Taxation Code, relating to taxation.

[ Filed with Secretary of State  September 27, 1996. Approved by Governor  September 26, 1996. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 2955, Knight. Income taxes: designations: administration: Veterans Memorial Account.
Under the Personal Income Tax Law, taxpayers are allowed to contribute amounts in excess of their tax liability for the support of various funds or accounts to be expended for specified purposes. Existing law specifically allows taxpayers, for taxable years beginning before January 1, 1996, to contribute amounts in excess of their tax liability for the support of the Veterans Memorial Account in the General Fund.
This bill would extend the operation of those particular provisions to taxable years beginning before January 1, 1997. This bill would generally require any specified taxpayer contribution fund or account to be reflected on personal income tax return forms through the taxable year immediately preceding the year in which the authority for that contribution fund or account is to be repealed. This bill would also generally require any specified taxpayer contribution fund or account to remain in effect until December 31 of the year in which the authorization for that fund or account is otherwise repealed, and would require any contribution amount designated for that fund or account in a timely filed tax return for the taxable year immediately preceding the year of repeal to be transferred and administered as required by the otherwise repealed article.

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


SECTION 1.

 Section 18731 of the Revenue and Taxation Code is amended to read:

18731.
 (a)  Any individual may designate on the tax return that a contribution in excess of the tax liability, if any, be made to the Veterans Memorial Account in the General Fund, as established pursuant to Section 1316 of the Military and Veterans Code.
(b)  The contribution shall be in full dollar amounts and may be made individually by each signatory on the joint return.
(c)  A designation under subdivision (a) shall be made for any taxable year beginning on or after January 1, 1991, and before January 1, 1997, on the initial return for that taxable year, and once made shall be irrevocable.
In the event that payments and credits reported on the return, together with any other credits associated with the taxpayer’s account, do not exceed the tax liability, if any, shown thereupon, the return shall be treated as though no designation had been made.
If the amount designated exceeds the amount actually available for designation, the amount designated shall be adjusted to correspond to the amount actually available for designation.
(d)  In the event a taxpayer designates a contribution to more than one account, and the amount available is insufficient to satisfy the total amount designated, the contribution shall be allocated among the designees on a pro rata basis.
(e)  The Franchise Tax Board shall revise the forms of the return to include a space labeled the Veterans Memorial Account to allow for the designation permitted under subdivision (a). The forms shall also include in the instructions the information that the contribution may be in the amount of one dollar ($1) or more and that the contribution shall be used to build a memorial to California veterans.
(f)  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).

SEC. 2.

 Article 16 (commencing with Section 18871) is added to Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, to read:
Article  16. General Provisions

18871.
 In implementing this chapter, both of the following requirements shall apply:
(a)  Unless otherwise specifically required by law, each voluntary contribution fund or account established by this chapter shall be included on the forms of the return through the taxable year immediately preceding the year of repeal of the article establishing that voluntary contribution fund or account.
(b)  Notwithstanding the repeal of any article of this chapter, the voluntary contribution fund or account specified in that article shall continue in effect until December 31 of the year of the repeal of that article, and any contribution designated pursuant to that article on a timely filed initial return for the taxable year immediately preceding the date of repeal shall be transferred and disbursed, and all costs incurred by the Franchise Tax Board and Controller in connection with the transfer and disbursement of these contribution amounts shall continue to be paid, in accordance with that article as it read immediately prior to its repeal.