Code Section Group

Revenue and Taxation Code - RTC

DIVISION 2. OTHER TAXES [6001 - 60709]

  ( 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 19. Keep Arts in Schools Voluntary Tax Contribution Fund [18891 - 18894]
  ( Heading of Article 19 amended by Stats. 2017, Ch. 519, Sec. 5. )

18891.
  

(a) An individual may designate on the tax return that a contribution in excess of tax liability, if any, be made to the Keep Arts in Schools Voluntary Tax Contribution Fund established by Section 18892. That designation is to be used as a voluntary contribution on the tax return.

(b) A contribution shall be in a full dollar amount and may be made individually by each signatory on a joint return.

(c) A designation made under subdivision (a) shall be made for any 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 tax liability, if any, the return shall be treated as though a designation had not been made.

(d) The Franchise Tax Board shall revise the form of the return to include a space labeled the “Keep Arts in Schools 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 by the Arts Council for the allocation of grants to individuals or organizations administering arts programs.

(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).

(Amended by Stats. 2017, Ch. 519, Sec. 6. (SB 503) Effective January 1, 2018. Inoperative on or before January 1, 2025, as prescribed in Section 18894. Repealed on or before December 1, 2025, pursuant to Section 18894.)

18892.
  

There is hereby established in the State Treasury the Keep Arts in Schools Voluntary Tax Contribution Fund to receive contributions made pursuant to Section 18891. The Franchise Tax Board shall notify the Controller of both the amount of money paid by taxpayers in excess of their tax liability and the amount of refund money that taxpayers have designated pursuant to Section 18891 to be transferred to the Keep Arts in Schools Voluntary Tax Contribution Fund. The Controller shall transfer from the Personal Income Tax Fund to the Keep Arts in Schools Voluntary Tax Contribution Fund an amount not in excess of the sum of the amounts designated by individuals pursuant to Section 18891 for payment into that fund.

(Amended by Stats. 2017, Ch. 519, Sec. 7. (SB 503) Effective January 1, 2018. Inoperative on or before January 1, 2025, as prescribed in Section 18894. Repealed on or before December 1, 2025, pursuant to Section 18894.)

18893.
  

Notwithstanding Section 13340 of the Government Code, all money transferred to the Keep Arts in Schools Voluntary Tax Contribution Fund shall be continuously appropriated and allocated as follows:

(a) To the Franchise Tax Board and the Controller only for reimbursement of all costs incurred by the Franchise Tax Board and the Controller in connection with their duties under this article.

(b) (1) To the Arts Council, for allocation of grants to individuals or organizations administering arts programs for children in preschool through 12th grade pursuant to subdivision (o) of Section 8753 of the Government Code.

(2) Funds made available to the Arts Council shall not be used for any purpose other than to provide grants as prescribed by this subdivision. Funds made available pursuant to this subdivision shall not be used by the Arts Council for administrative purposes, to reimburse its costs associated with administering grants, to further its programs, or for any purpose relating to its own operations.

(3) The Arts Council shall comply with subdivision (b) of Section 18873.

(Amended by Stats. 2017, Ch. 519, Sec. 8. (SB 503) Effective January 1, 2018. Inoperative on or before January 1, 2025, as prescribed in Section 18894. Repealed on or before December 1, 2025, pursuant to Section 18894.)

18894.
  

(a) Except as otherwise provided in subdivision (b), this article shall remain in effect only until January 1, 2025, and is repealed as of December 1 of that year.

(b) (1) By September 1 of the 2018 calendar year and each subsequent calendar year that the Keep Arts in Schools 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 as described in 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 shall be 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 year.

(3) For purposes of this section, the minimum contribution amount for a calendar year means two hundred fifty thousand dollars ($250,000).

(Amended by Stats. 2017, Ch. 519, Sec. 9. (SB 503) Effective January 1, 2018. Repealed on or before December 1, 2025, pursuant to its own provisions. Note: Termination provisions affect Article 19, commencing with Section 18891.)

RTCRevenue and Taxation Code - RTC19