Code Section Group

Revenue and Taxation Code - RTC

DIVISION 2. OTHER TAXES [6001 - 61045]

  ( Heading of Division 2 amended by Stats. 1968, Ch. 279. )

PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802]

  ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. )

CHAPTER 3. Voluntary Contributions [18701 - 18913]

  ( Chapter 3 added by Stats. 1993, Ch. 31, Sec. 26. )

ARTICLE 16. General Provisions [18871 - 18874]
  ( Article 16 added by Stats. 1996, Ch. 960, Sec. 2. )

18871.
  

In implementing this chapter, all 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.

(c) Unless otherwise specifically required by law, a contribution made to any voluntary contribution fund or account established by this chapter shall be subject to the following provisions:

(1) In the event that no designee is specified, the contribution shall, after reimbursement of the direct actual costs of the Franchise Tax Board for the collection and administration of contributions made under this article, be transferred to the General Fund.

(2) In the event an individual designates a contribution to more than one account or fund listed on the tax return, 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.

(d) (1) If the number of contingent voluntary contribution designations that are eligible to be added to the tax return for a taxable year is greater than the number of voluntary contribution designations removed, those contingent voluntary contribution designations that are eligible to be added to the tax return shall be added to the tax return in the order of the date of enactment, with the voluntary contribution designation with the earliest date of enactment to be added first.

(2) For purposes of this subdivision:

(A) A contingent voluntary contribution designation means a voluntary contribution designation authorized under this chapter that may not be added to the tax return until another voluntary contribution designation is removed from the tax form.

(B) The date of enactment of a contingent voluntary contribution designation authorized under this chapter shall be the date the act authorizing the contingent voluntary contribution designation was filed with the Secretary of State. In the event that more than one act authorizing a contingent voluntary contribution designation is filed with the Secretary of State on the same date, the act with the lowest chapter number will be conclusively presumed to have been filed with the Secretary of State before any other act authorizing a contingent voluntary contribution designation with a higher number.

(e) Notwithstanding subdivision (d), or the contingency language of an act prohibiting the addition of a contingent voluntary contribution designation until another voluntary contribution designation is removed, the Franchise Tax Board may add one or more voluntary contribution designations if the board determines that space is available on the tax return to accommodate the additional voluntary contribution designation.

(Amended by Stats. 2003, Ch. 170, Sec. 1. Effective January 1, 2004.)

18872.
  

The Legislature finds and declares that it is important to inform taxpayers that they may make voluntary contributions to certain funds or programs, as provided on the state income tax return. The Legislature further finds and declares that many taxpayers remain unaware of the voluntary contribution check-offs on the state income tax return. Therefore, it is the intent of the Legislature to encourage all persons who prepare state income tax returns to inform their clients in writing, prior to the completion of any tax return, that they may make a contribution to any voluntary contribution check-off on the state income tax return if they so choose.

(Amended by Stats. 1998, Ch. 485, Sec. 151. Effective January 1, 1999.)

18873.
  

Notwithstanding any other law, all of the following requirements shall apply to any new voluntary tax contributions, including an extension of any existing voluntary tax contribution:

(a) The words “voluntary tax contribution” shall be included as part of the name of the fund.

(b) (1) The administering agency’s Internet Web site shall report the process for awarding money, the amount of money spent on administration, and an itemization of how program funds were awarded by the agency, including, but not limited to, information regarding recipients of funds.

(2) An “administering agency” means the state agency or other governmental entity, other than the Franchise Tax Board and the Controller, to which funds are allocated to accomplish the purposes of the voluntary tax contribution designation.

(c) (1) Except as otherwise provided in paragraph (2) or where another inoperative or repeal date is provided, the article establishing the voluntary tax contribution shall remain in effect only until January 1 of the seventh calendar year following the first appearance of the contribution on the personal income tax return, and is repealed as of December 1 of that year.

(2) The minimum contribution amount that must be received for the fund to continue appearing on the tax return is two hundred fifty thousand dollars ($250,000) for the second calendar year after the first appearance of the fund on the personal income tax return and each calendar year thereafter.

(d) Contributions made pursuant to the voluntary tax contribution shall be continuously appropriated from the fund to the administering agency to be spent as prescribed in the act in which the voluntary tax contribution is enacted.

(e) This section shall apply only to new voluntary tax contributions, including an extension of any existing voluntary tax contribution, that take effect on or after January 2, 2017.

(Added by Stats. 2016, Ch. 597, Sec. 1. (SB 1476) Effective January 1, 2017.)

18874.
  

(a) Except as provided in subdivision (b) and notwithstanding any other law, the following shall apply to any voluntary tax contribution fund established by this chapter, appearing on the tax return for the 2016 taxable year, that has a minimum contribution amount requirement for the 2017 calendar year in order to continue to appear on the tax return form for the 2017 taxable year:

(1) The minimum contribution amount requirement for the 2017 calendar year is equal to zero dollars ($0).

(2) The minimum contribution amount requirement for the 2018 calendar year, in order to appear on the tax return form for the 2018 taxable year, means the greater of either two hundred fifty thousand dollars ($250,000), pursuant to paragraph (2) of subdivision (c) of Section 18873, or the minimum contribution amount previously determined, pursuant to the provisions of the article establishing the fund, as of September 1, 2016, that would have been for the 2017 calendar year for that fund.

(b) This section does not apply to a voluntary contribution fund that is otherwise subject to repeal, pursuant to the provisions of the article establishing the fund, without regard to satisfying a minimum contribution amount requirement.

(Amended by Stats. 2017, Ch. 252, Sec. 19. (AB 131) Effective September 16, 2017.)

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