Assembly Bill 1033 (Frusetta), as enacted on October 6, 1997, made the following changes to California law:
SUBJECT: State Children’s Trust Fund/Reinstate and Extend Repeal Date
Section 18711 is added to the Revenue and Taxation Code.
Under the Administration of Franchise and Income Tax Laws, this act reinstates and extends the operation of the State Children’s Trust Fund allowing taxpayers to make a voluntary contribution on their personal income tax returns to the fund.
This section specifies how the contributions are to be designated when:
- a taxpayer’s payments and credits do not exceed their tax liability;
- no designation has been made; and
- more than one contribution is listed, but the amount for designation is insufficient to satisfy the total amount designated.
This section requires space on the tax return for the State Children’s Trust Fund and allows a deduction for any contribution in full dollar amounts made to the fund.
Section 18712 is added to the Revenue and Taxation Code.
This section requires the Franchise Tax Board (FTB) to notify the Controller of the amounts collected that are designated for transfer from the Personal Income Tax Fund to the State Children’s Trust Fund. This section requires the Controller to transfer that amount, less the direct, actual costs of the FTB, to the fund. Upon appropriation, this section requires the Controller to transfer the amount of the FTB’s costs to the FTB.
Section 18713 is added to the Revenue and Taxation Code.
This section states that the intention of the Legislature is to create an additional source of funding for a specified purpose. This section requires that the funds generated by this article cannot be used in place of funds from other sources which are available for appropriation to the State Children’s Trust Fund.
Section 18714 is added to the Revenue and Taxation Code.
This section states that this article applies to taxable years beginning on or after January 1, 1997.
Section 18715 is added to the Revenue and Taxation Code.
This act is repealed on January 1, 2002. However, if the FTB estimates by September 1 of any year, beginning in taxable year 1997, that the contributions for that year will be less than $250,000 (as adjusted for inflation), the statute will be repealed and the Fund will be deleted from the tax return in the following year.
This act will take effect on January 1, 1998, and applies to tax returns filed for the 1997 through 2001 tax years.
This act will not require any reports by the department to the Legislature.