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| 1 | + | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 350Introduced by Assembly Member ChoiFebruary 04, 2019 An act to add Section 17206.2 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 350, as introduced, Choi. Personal income taxes: deduction: 529 college savings plans: contributions. The Personal Income Tax Law, in modified conformity with federal income tax laws, excludes from the gross income distributions or earnings of a beneficiary of, or a contributor to, a qualified tuition program, as provided, and contributions to a plan are not deductible in computing the income that is subject to the taxes imposed by that law.This bill, for taxable years beginning on or after January 1, 2019, would allow as a deduction under that law the lesser of (1) the amount contributed by a qualified taxpayer, as defined, to a qualified tuition program, as specified, or (2) $6,000 for spouses filing joint returns, heads of households, and surviving spouses, as defined, or $3,000 for a single individual or a spouse filing separately, as indexed for inflation.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 17206.2 is added to the Revenue and Taxation Code, to read:17206.2. (a) For taxable years beginning on or after January 1, 2019, there shall be allowed as a deduction the lesser of the amount contributed by a qualified taxpayer during the taxable year to a qualified tuition program under Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3, or the applicable amount determined under subdivision (d).(b) For purposes of this section, qualified taxpayer means an individual who, on behalf of a beneficiary, contributes money to a qualified tuition program and meets all of the other applicable requirements of Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3.(c) Section 67(b) of the Internal Revenue Code, relating to miscellaneous itemized deductions, is modified to additionally provide that the deduction allowed under this section is an itemized deduction that is not subject to the 2-percent floor on itemized deductions under Section 67(a) of the Internal Revenue Code, relating to general rule.(d) (1) The amount allowed as a deduction under subdivision (a) shall not exceed the following amounts:(A) For spouses filing joint returns, heads of households, and surviving spouses, as defined in Section 17046, six thousand dollars ($6,000).(B) For a single individual or a spouse filing separately, three thousand dollars ($3,000).(2) For each taxable year beginning on or after January 1, 2020, the Franchise Tax Board shall recompute the deduction amount prescribed in paragraph (1) in the manner described in subdivision (h) of Section 17041.SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
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| 3 | + | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 350Introduced by Assembly Member ChoiFebruary 04, 2019 An act to add Section 17206.2 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 350, as introduced, Choi. Personal income taxes: deduction: 529 college savings plans: contributions. The Personal Income Tax Law, in modified conformity with federal income tax laws, excludes from the gross income distributions or earnings of a beneficiary of, or a contributor to, a qualified tuition program, as provided, and contributions to a plan are not deductible in computing the income that is subject to the taxes imposed by that law.This bill, for taxable years beginning on or after January 1, 2019, would allow as a deduction under that law the lesser of (1) the amount contributed by a qualified taxpayer, as defined, to a qualified tuition program, as specified, or (2) $6,000 for spouses filing joint returns, heads of households, and surviving spouses, as defined, or $3,000 for a single individual or a spouse filing separately, as indexed for inflation.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
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| 5 | - | Amended IN Assembly March 19, 2019 | |
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| 7 | - | Amended IN Assembly March 19, 2019 | |
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| 7 | + | ||
| 8 | 8 | ||
| 9 | 9 | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION | |
| 10 | 10 | ||
| 11 | 11 | Assembly Bill No. 350 | |
| 12 | 12 | ||
| 13 | 13 | Introduced by Assembly Member ChoiFebruary 04, 2019 | |
| 14 | 14 | ||
| 15 | 15 | Introduced by Assembly Member Choi | |
| 16 | 16 | February 04, 2019 | |
| 17 | 17 | ||
| 18 | - | An act to add | |
| 18 | + | An act to add Section 17206.2 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. | |
| 19 | 19 | ||
| 20 | 20 | LEGISLATIVE COUNSEL'S DIGEST | |
| 21 | 21 | ||
| 22 | 22 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 23 | 23 | ||
| 24 | - | AB 350, as | |
| 24 | + | AB 350, as introduced, Choi. Personal income taxes: deduction: 529 college savings plans: contributions. | |
| 25 | 25 | ||
| 26 | 26 | The Personal Income Tax Law, in modified conformity with federal income tax laws, excludes from the gross income distributions or earnings of a beneficiary of, or a contributor to, a qualified tuition program, as provided, and contributions to a plan are not deductible in computing the income that is subject to the taxes imposed by that law.This bill, for taxable years beginning on or after January 1, 2019, would allow as a deduction under that law the lesser of (1) the amount contributed by a qualified taxpayer, as defined, to a qualified tuition program, as specified, or (2) $6,000 for spouses filing joint returns, heads of households, and surviving spouses, as defined, or $3,000 for a single individual or a spouse filing separately, as indexed for inflation.This bill would take effect immediately as a tax levy. | |
| 27 | 27 | ||
| 28 | 28 | The Personal Income Tax Law, in modified conformity with federal income tax laws, excludes from the gross income distributions or earnings of a beneficiary of, or a contributor to, a qualified tuition program, as provided, and contributions to a plan are not deductible in computing the income that is subject to the taxes imposed by that law. | |
| 29 | 29 | ||
| 30 | 30 | This bill, for taxable years beginning on or after January 1, 2019, would allow as a deduction under that law the lesser of (1) the amount contributed by a qualified taxpayer, as defined, to a qualified tuition program, as specified, or (2) $6,000 for spouses filing joint returns, heads of households, and surviving spouses, as defined, or $3,000 for a single individual or a spouse filing separately, as indexed for inflation. | |
| 31 | 31 | ||
| 32 | 32 | This bill would take effect immediately as a tax levy. | |
| 33 | 33 | ||
| 34 | 34 | ## Digest Key | |
| 35 | 35 | ||
| 36 | 36 | ## Bill Text | |
| 37 | 37 | ||
| 38 | - | The people of the State of California do enact as follows:SECTION 1. Section 17206.2 is added to the Revenue and Taxation Code, to read:17206.2. (a) For taxable years beginning on or after January 1, 2019 | |
| 38 | + | The people of the State of California do enact as follows:SECTION 1. Section 17206.2 is added to the Revenue and Taxation Code, to read:17206.2. (a) For taxable years beginning on or after January 1, 2019, there shall be allowed as a deduction the lesser of the amount contributed by a qualified taxpayer during the taxable year to a qualified tuition program under Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3, or the applicable amount determined under subdivision (d).(b) For purposes of this section, qualified taxpayer means an individual who, on behalf of a beneficiary, contributes money to a qualified tuition program and meets all of the other applicable requirements of Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3.(c) Section 67(b) of the Internal Revenue Code, relating to miscellaneous itemized deductions, is modified to additionally provide that the deduction allowed under this section is an itemized deduction that is not subject to the 2-percent floor on itemized deductions under Section 67(a) of the Internal Revenue Code, relating to general rule.(d) (1) The amount allowed as a deduction under subdivision (a) shall not exceed the following amounts:(A) For spouses filing joint returns, heads of households, and surviving spouses, as defined in Section 17046, six thousand dollars ($6,000).(B) For a single individual or a spouse filing separately, three thousand dollars ($3,000).(2) For each taxable year beginning on or after January 1, 2020, the Franchise Tax Board shall recompute the deduction amount prescribed in paragraph (1) in the manner described in subdivision (h) of Section 17041.SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
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| 40 | 40 | The people of the State of California do enact as follows: | |
| 41 | 41 | ||
| 42 | 42 | ## The people of the State of California do enact as follows: | |
| 43 | 43 | ||
| 44 | - | SECTION 1. Section 17206.2 is added to the Revenue and Taxation Code, to read:17206.2. (a) For taxable years beginning on or after January 1, 2019 | |
| 44 | + | SECTION 1. Section 17206.2 is added to the Revenue and Taxation Code, to read:17206.2. (a) For taxable years beginning on or after January 1, 2019, there shall be allowed as a deduction the lesser of the amount contributed by a qualified taxpayer during the taxable year to a qualified tuition program under Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3, or the applicable amount determined under subdivision (d).(b) For purposes of this section, qualified taxpayer means an individual who, on behalf of a beneficiary, contributes money to a qualified tuition program and meets all of the other applicable requirements of Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3.(c) Section 67(b) of the Internal Revenue Code, relating to miscellaneous itemized deductions, is modified to additionally provide that the deduction allowed under this section is an itemized deduction that is not subject to the 2-percent floor on itemized deductions under Section 67(a) of the Internal Revenue Code, relating to general rule.(d) (1) The amount allowed as a deduction under subdivision (a) shall not exceed the following amounts:(A) For spouses filing joint returns, heads of households, and surviving spouses, as defined in Section 17046, six thousand dollars ($6,000).(B) For a single individual or a spouse filing separately, three thousand dollars ($3,000).(2) For each taxable year beginning on or after January 1, 2020, the Franchise Tax Board shall recompute the deduction amount prescribed in paragraph (1) in the manner described in subdivision (h) of Section 17041. | |
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| 46 | 46 | SECTION 1. Section 17206.2 is added to the Revenue and Taxation Code, to read: | |
| 47 | 47 | ||
| 48 | 48 | ### SECTION 1. | |
| 49 | 49 | ||
| 50 | - | 17206.2. (a) For taxable years beginning on or after January 1, 2019 | |
| 50 | + | 17206.2. (a) For taxable years beginning on or after January 1, 2019, there shall be allowed as a deduction the lesser of the amount contributed by a qualified taxpayer during the taxable year to a qualified tuition program under Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3, or the applicable amount determined under subdivision (d).(b) For purposes of this section, qualified taxpayer means an individual who, on behalf of a beneficiary, contributes money to a qualified tuition program and meets all of the other applicable requirements of Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3.(c) Section 67(b) of the Internal Revenue Code, relating to miscellaneous itemized deductions, is modified to additionally provide that the deduction allowed under this section is an itemized deduction that is not subject to the 2-percent floor on itemized deductions under Section 67(a) of the Internal Revenue Code, relating to general rule.(d) (1) The amount allowed as a deduction under subdivision (a) shall not exceed the following amounts:(A) For spouses filing joint returns, heads of households, and surviving spouses, as defined in Section 17046, six thousand dollars ($6,000).(B) For a single individual or a spouse filing separately, three thousand dollars ($3,000).(2) For each taxable year beginning on or after January 1, 2020, the Franchise Tax Board shall recompute the deduction amount prescribed in paragraph (1) in the manner described in subdivision (h) of Section 17041. | |
| 51 | 51 | ||
| 52 | - | 17206.2. (a) For taxable years beginning on or after January 1, 2019 | |
| 52 | + | 17206.2. (a) For taxable years beginning on or after January 1, 2019, there shall be allowed as a deduction the lesser of the amount contributed by a qualified taxpayer during the taxable year to a qualified tuition program under Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3, or the applicable amount determined under subdivision (d).(b) For purposes of this section, qualified taxpayer means an individual who, on behalf of a beneficiary, contributes money to a qualified tuition program and meets all of the other applicable requirements of Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3.(c) Section 67(b) of the Internal Revenue Code, relating to miscellaneous itemized deductions, is modified to additionally provide that the deduction allowed under this section is an itemized deduction that is not subject to the 2-percent floor on itemized deductions under Section 67(a) of the Internal Revenue Code, relating to general rule.(d) (1) The amount allowed as a deduction under subdivision (a) shall not exceed the following amounts:(A) For spouses filing joint returns, heads of households, and surviving spouses, as defined in Section 17046, six thousand dollars ($6,000).(B) For a single individual or a spouse filing separately, three thousand dollars ($3,000).(2) For each taxable year beginning on or after January 1, 2020, the Franchise Tax Board shall recompute the deduction amount prescribed in paragraph (1) in the manner described in subdivision (h) of Section 17041. | |
| 53 | 53 | ||
| 54 | - | 17206.2. (a) For taxable years beginning on or after January 1, 2019 | |
| 54 | + | 17206.2. (a) For taxable years beginning on or after January 1, 2019, there shall be allowed as a deduction the lesser of the amount contributed by a qualified taxpayer during the taxable year to a qualified tuition program under Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3, or the applicable amount determined under subdivision (d).(b) For purposes of this section, qualified taxpayer means an individual who, on behalf of a beneficiary, contributes money to a qualified tuition program and meets all of the other applicable requirements of Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3.(c) Section 67(b) of the Internal Revenue Code, relating to miscellaneous itemized deductions, is modified to additionally provide that the deduction allowed under this section is an itemized deduction that is not subject to the 2-percent floor on itemized deductions under Section 67(a) of the Internal Revenue Code, relating to general rule.(d) (1) The amount allowed as a deduction under subdivision (a) shall not exceed the following amounts:(A) For spouses filing joint returns, heads of households, and surviving spouses, as defined in Section 17046, six thousand dollars ($6,000).(B) For a single individual or a spouse filing separately, three thousand dollars ($3,000).(2) For each taxable year beginning on or after January 1, 2020, the Franchise Tax Board shall recompute the deduction amount prescribed in paragraph (1) in the manner described in subdivision (h) of Section 17041. | |
| 55 | 55 | ||
| 56 | 56 | ||
| 57 | 57 | ||
| 58 | - | 17206.2. (a) For taxable years beginning on or after January 1, 2019 | |
| 58 | + | 17206.2. (a) For taxable years beginning on or after January 1, 2019, there shall be allowed as a deduction the lesser of the amount contributed by a qualified taxpayer during the taxable year to a qualified tuition program under Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3, or the applicable amount determined under subdivision (d). | |
| 59 | 59 | ||
| 60 | 60 | (b) For purposes of this section, qualified taxpayer means an individual who, on behalf of a beneficiary, contributes money to a qualified tuition program and meets all of the other applicable requirements of Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3. | |
| 61 | 61 | ||
| 62 | 62 | (c) Section 67(b) of the Internal Revenue Code, relating to miscellaneous itemized deductions, is modified to additionally provide that the deduction allowed under this section is an itemized deduction that is not subject to the 2-percent floor on itemized deductions under Section 67(a) of the Internal Revenue Code, relating to general rule. | |
| 63 | 63 | ||
| 64 | 64 | (d) (1) The amount allowed as a deduction under subdivision (a) shall not exceed the following amounts: | |
| 65 | 65 | ||
| 66 | 66 | (A) For spouses filing joint returns, heads of households, and surviving spouses, as defined in Section 17046, six thousand dollars ($6,000). | |
| 67 | 67 | ||
| 68 | 68 | (B) For a single individual or a spouse filing separately, three thousand dollars ($3,000). | |
| 69 | 69 | ||
| 70 | 70 | (2) For each taxable year beginning on or after January 1, 2020, the Franchise Tax Board shall recompute the deduction amount prescribed in paragraph (1) in the manner described in subdivision (h) of Section 17041. | |
| 71 | 71 | ||
| 72 | - | ||
| 72 | + | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 73 | 73 | ||
| 74 | - | SEC. 2. | |
| 74 | + | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 75 | 75 | ||
| 76 | - | SEC. 2. (a) It is the intent of the Legislature to apply the requirements of Section 41 of the Revenue and Taxation Code to this act.(b) With respect to Section 17206.2 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares as follows:(1) The goal of this act is to help California to compete and be on par with top 529 plans in the country, while providing financial relief to families who are taking on debt or students taking on student loan debt.(2) The effectiveness of the deduction allowed by this act shall be measured as follows: the Franchise Tax Board shall report on its internet website the number of taxpayers who claim the deduction allowed by this act. The Legislature shall use this information to determine whether the deduction allowed by this act results in more contributions to a qualified tuition program under Section 529 of the Internal Revenue Code. | |
| 77 | - | ||
| 78 | - | SEC. 2. (a) It is the intent of the Legislature to apply the requirements of Section 41 of the Revenue and Taxation Code to this act. | |
| 76 | + | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 79 | 77 | ||
| 80 | 78 | ### SEC. 2. | |
| 81 | - | ||
| 82 | - | (b) With respect to Section 17206.2 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares as follows: | |
| 83 | - | ||
| 84 | - | (1) The goal of this act is to help California to compete and be on par with top 529 plans in the country, while providing financial relief to families who are taking on debt or students taking on student loan debt. | |
| 85 | - | ||
| 86 | - | (2) The effectiveness of the deduction allowed by this act shall be measured as follows: the Franchise Tax Board shall report on its internet website the number of taxpayers who claim the deduction allowed by this act. The Legislature shall use this information to determine whether the deduction allowed by this act results in more contributions to a qualified tuition program under Section 529 of the Internal Revenue Code. | |
| 87 | - | ||
| 88 | - | SEC. 2.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 89 | - | ||
| 90 | - | SEC. 2.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 91 | - | ||
| 92 | - | SEC. 2.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 93 | - | ||
| 94 | - | ### SEC. 2.SEC. 3. |