Amended IN Assembly March 18, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2486Introduced by Assembly Member Vince FongFebruary 13, 2024An act to amend Section 17053.12 of add Section 19501.5 to the Revenue and Taxation Code, relating to taxation.LEGISLATIVE COUNSEL'S DIGESTAB 2486, as amended, Vince Fong. Personal Income Tax Law: credit: donated agricultural products. Personal Income Tax Law: Corporation Tax Law: administration: Income and Franchise Tax Fund.The Personal Income Tax Law and the Corporation Tax Law impose taxes based upon taxable income at specified rates. This bill would create the Income and Franchise Tax Fund in the State Treasury, and would require that all revenues collected pursuant to those laws, less refunds, be deposited in that fund. The bill would require the Controller to annually transfer from that fund to the General Fund an amount not to exceed the average revenues generated pursuant to the Personal Income Tax Law and the Corporation Tax Law, less refunds, over the prior 5 fiscal years. The bill would adjust the amount of the transfer for inflation, as provided.The Personal Income Tax Law allows to a taxpayer who transports a donated agricultural product, as specified, a credit against the net tax in an amount equal to 50 percent of the transportation costs paid or incurred by the taxpayer in connection with the transportation of that donated agricultural product.This bill would make a nonsubstantive change to that provision.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 19501.5 is added to the Revenue and Taxation Code, to read:19501.5. (a) Notwithstanding any other law, all revenues collected pursuant to Part 10 (commencing with Section 17001) and Part 11 (commencing with Section 23001), less refunds, shall be deposited into the Income and Franchise Tax Fund, which is hereby created in the State Treasury.(b) (1) The Controller shall annually transfer from the Income and Franchise Tax Fund to the General Fund an amount not to exceed the average revenues generated pursuant to Part 10 (commencing with Section 17001) and Part 11 (commencing with Section 23001), less refunds, for the prior five fiscal years.(2) The transfer in paragraph (1) shall be adjusted for inflation as follows:(A) The California Department of Industrial Relations shall transmit annually to the Controller the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current calendar year, no later than August 1 of the current calendar year.(B) The Controller shall do both of the following:(i) Compute an inflation adjustment factor by adding 100 percent to the percentage change figure that is furnished pursuant to paragraph (1) and dividing the result by 100.(ii) Multiply the five-year average revenues by the inflation adjustment factor determined in clause (i) and round off the resulting products to the nearest one dollar ($1).SECTION 1.Section 17053.12 of the Revenue and Taxation Code is amended to read:17053.12.(a)In the case of a taxpayer who transports an agricultural product donated in accordance with Chapter 5 (commencing with Section 58501) of Part 1 of Division 21 of the Food and Agricultural Code, for taxable years beginning on or after January 1, 1996, there shall be allowed as a credit against the net tax (as defined by Section 17039), an amount equal to 50 percent of the transportation costs paid or incurred by the taxpayer in connection with the transportation of that donated agricultural product.(b)If any credit allowed by this section is claimed by the taxpayer, any deduction otherwise allowed under this part for that amount of the cost paid or incurred by the taxpayer which is eligible for the credit that is claimed shall be reduced by the amount of the credit allowed.(c)Upon delivery of the donated agricultural product by a taxpayer authorized to claim a credit pursuant to subdivision (a), the nonprofit charitable organization shall provide a certificate to the taxpayer who transported the agricultural product. The certificate shall contain a statement signed and dated by a person authorized by that organization that the product is donated under Chapter 5 (commencing with Section 58501) of Part 1 of Division 21 of the Food and Agricultural Code. The certificate shall also contain the following information: the type and quantity of product donated, the distance transported, the name of the transporter, the name of the taxpayer donor, and the name and address of the donee. Upon the request of the Franchise Tax Board, the taxpayer shall provide a copy of the certification to the Franchise Tax Board.(d)In the case where any credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding years if necessary, until the credit has been exhausted.
Amended IN Assembly March 18, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2486Introduced by Assembly Member Vince FongFebruary 13, 2024An act to amend Section 17053.12 of add Section 19501.5 to the Revenue and Taxation Code, relating to taxation.LEGISLATIVE COUNSEL'S DIGESTAB 2486, as amended, Vince Fong. Personal Income Tax Law: credit: donated agricultural products. Personal Income Tax Law: Corporation Tax Law: administration: Income and Franchise Tax Fund.The Personal Income Tax Law and the Corporation Tax Law impose taxes based upon taxable income at specified rates. This bill would create the Income and Franchise Tax Fund in the State Treasury, and would require that all revenues collected pursuant to those laws, less refunds, be deposited in that fund. The bill would require the Controller to annually transfer from that fund to the General Fund an amount not to exceed the average revenues generated pursuant to the Personal Income Tax Law and the Corporation Tax Law, less refunds, over the prior 5 fiscal years. The bill would adjust the amount of the transfer for inflation, as provided.The Personal Income Tax Law allows to a taxpayer who transports a donated agricultural product, as specified, a credit against the net tax in an amount equal to 50 percent of the transportation costs paid or incurred by the taxpayer in connection with the transportation of that donated agricultural product.This bill would make a nonsubstantive change to that provision.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO
Amended IN Assembly March 18, 2024
Amended IN Assembly March 18, 2024
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Assembly Bill
No. 2486
Introduced by Assembly Member Vince FongFebruary 13, 2024
Introduced by Assembly Member Vince Fong
February 13, 2024
An act to amend Section 17053.12 of add Section 19501.5 to the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 2486, as amended, Vince Fong. Personal Income Tax Law: credit: donated agricultural products. Personal Income Tax Law: Corporation Tax Law: administration: Income and Franchise Tax Fund.
The Personal Income Tax Law and the Corporation Tax Law impose taxes based upon taxable income at specified rates. This bill would create the Income and Franchise Tax Fund in the State Treasury, and would require that all revenues collected pursuant to those laws, less refunds, be deposited in that fund. The bill would require the Controller to annually transfer from that fund to the General Fund an amount not to exceed the average revenues generated pursuant to the Personal Income Tax Law and the Corporation Tax Law, less refunds, over the prior 5 fiscal years. The bill would adjust the amount of the transfer for inflation, as provided.The Personal Income Tax Law allows to a taxpayer who transports a donated agricultural product, as specified, a credit against the net tax in an amount equal to 50 percent of the transportation costs paid or incurred by the taxpayer in connection with the transportation of that donated agricultural product.This bill would make a nonsubstantive change to that provision.
The Personal Income Tax Law and the Corporation Tax Law impose taxes based upon taxable income at specified rates.
This bill would create the Income and Franchise Tax Fund in the State Treasury, and would require that all revenues collected pursuant to those laws, less refunds, be deposited in that fund. The bill would require the Controller to annually transfer from that fund to the General Fund an amount not to exceed the average revenues generated pursuant to the Personal Income Tax Law and the Corporation Tax Law, less refunds, over the prior 5 fiscal years. The bill would adjust the amount of the transfer for inflation, as provided.
The Personal Income Tax Law allows to a taxpayer who transports a donated agricultural product, as specified, a credit against the net tax in an amount equal to 50 percent of the transportation costs paid or incurred by the taxpayer in connection with the transportation of that donated agricultural product.
This bill would make a nonsubstantive change to that provision.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 19501.5 is added to the Revenue and Taxation Code, to read:19501.5. (a) Notwithstanding any other law, all revenues collected pursuant to Part 10 (commencing with Section 17001) and Part 11 (commencing with Section 23001), less refunds, shall be deposited into the Income and Franchise Tax Fund, which is hereby created in the State Treasury.(b) (1) The Controller shall annually transfer from the Income and Franchise Tax Fund to the General Fund an amount not to exceed the average revenues generated pursuant to Part 10 (commencing with Section 17001) and Part 11 (commencing with Section 23001), less refunds, for the prior five fiscal years.(2) The transfer in paragraph (1) shall be adjusted for inflation as follows:(A) The California Department of Industrial Relations shall transmit annually to the Controller the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current calendar year, no later than August 1 of the current calendar year.(B) The Controller shall do both of the following:(i) Compute an inflation adjustment factor by adding 100 percent to the percentage change figure that is furnished pursuant to paragraph (1) and dividing the result by 100.(ii) Multiply the five-year average revenues by the inflation adjustment factor determined in clause (i) and round off the resulting products to the nearest one dollar ($1).SECTION 1.Section 17053.12 of the Revenue and Taxation Code is amended to read:17053.12.(a)In the case of a taxpayer who transports an agricultural product donated in accordance with Chapter 5 (commencing with Section 58501) of Part 1 of Division 21 of the Food and Agricultural Code, for taxable years beginning on or after January 1, 1996, there shall be allowed as a credit against the net tax (as defined by Section 17039), an amount equal to 50 percent of the transportation costs paid or incurred by the taxpayer in connection with the transportation of that donated agricultural product.(b)If any credit allowed by this section is claimed by the taxpayer, any deduction otherwise allowed under this part for that amount of the cost paid or incurred by the taxpayer which is eligible for the credit that is claimed shall be reduced by the amount of the credit allowed.(c)Upon delivery of the donated agricultural product by a taxpayer authorized to claim a credit pursuant to subdivision (a), the nonprofit charitable organization shall provide a certificate to the taxpayer who transported the agricultural product. The certificate shall contain a statement signed and dated by a person authorized by that organization that the product is donated under Chapter 5 (commencing with Section 58501) of Part 1 of Division 21 of the Food and Agricultural Code. The certificate shall also contain the following information: the type and quantity of product donated, the distance transported, the name of the transporter, the name of the taxpayer donor, and the name and address of the donee. Upon the request of the Franchise Tax Board, the taxpayer shall provide a copy of the certification to the Franchise Tax Board.(d)In the case where any credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding years if necessary, until the credit has been exhausted.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 19501.5 is added to the Revenue and Taxation Code, to read:19501.5. (a) Notwithstanding any other law, all revenues collected pursuant to Part 10 (commencing with Section 17001) and Part 11 (commencing with Section 23001), less refunds, shall be deposited into the Income and Franchise Tax Fund, which is hereby created in the State Treasury.(b) (1) The Controller shall annually transfer from the Income and Franchise Tax Fund to the General Fund an amount not to exceed the average revenues generated pursuant to Part 10 (commencing with Section 17001) and Part 11 (commencing with Section 23001), less refunds, for the prior five fiscal years.(2) The transfer in paragraph (1) shall be adjusted for inflation as follows:(A) The California Department of Industrial Relations shall transmit annually to the Controller the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current calendar year, no later than August 1 of the current calendar year.(B) The Controller shall do both of the following:(i) Compute an inflation adjustment factor by adding 100 percent to the percentage change figure that is furnished pursuant to paragraph (1) and dividing the result by 100.(ii) Multiply the five-year average revenues by the inflation adjustment factor determined in clause (i) and round off the resulting products to the nearest one dollar ($1).
SECTION 1. Section 19501.5 is added to the Revenue and Taxation Code, to read:
### SECTION 1.
19501.5. (a) Notwithstanding any other law, all revenues collected pursuant to Part 10 (commencing with Section 17001) and Part 11 (commencing with Section 23001), less refunds, shall be deposited into the Income and Franchise Tax Fund, which is hereby created in the State Treasury.(b) (1) The Controller shall annually transfer from the Income and Franchise Tax Fund to the General Fund an amount not to exceed the average revenues generated pursuant to Part 10 (commencing with Section 17001) and Part 11 (commencing with Section 23001), less refunds, for the prior five fiscal years.(2) The transfer in paragraph (1) shall be adjusted for inflation as follows:(A) The California Department of Industrial Relations shall transmit annually to the Controller the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current calendar year, no later than August 1 of the current calendar year.(B) The Controller shall do both of the following:(i) Compute an inflation adjustment factor by adding 100 percent to the percentage change figure that is furnished pursuant to paragraph (1) and dividing the result by 100.(ii) Multiply the five-year average revenues by the inflation adjustment factor determined in clause (i) and round off the resulting products to the nearest one dollar ($1).
19501.5. (a) Notwithstanding any other law, all revenues collected pursuant to Part 10 (commencing with Section 17001) and Part 11 (commencing with Section 23001), less refunds, shall be deposited into the Income and Franchise Tax Fund, which is hereby created in the State Treasury.(b) (1) The Controller shall annually transfer from the Income and Franchise Tax Fund to the General Fund an amount not to exceed the average revenues generated pursuant to Part 10 (commencing with Section 17001) and Part 11 (commencing with Section 23001), less refunds, for the prior five fiscal years.(2) The transfer in paragraph (1) shall be adjusted for inflation as follows:(A) The California Department of Industrial Relations shall transmit annually to the Controller the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current calendar year, no later than August 1 of the current calendar year.(B) The Controller shall do both of the following:(i) Compute an inflation adjustment factor by adding 100 percent to the percentage change figure that is furnished pursuant to paragraph (1) and dividing the result by 100.(ii) Multiply the five-year average revenues by the inflation adjustment factor determined in clause (i) and round off the resulting products to the nearest one dollar ($1).
19501.5. (a) Notwithstanding any other law, all revenues collected pursuant to Part 10 (commencing with Section 17001) and Part 11 (commencing with Section 23001), less refunds, shall be deposited into the Income and Franchise Tax Fund, which is hereby created in the State Treasury.(b) (1) The Controller shall annually transfer from the Income and Franchise Tax Fund to the General Fund an amount not to exceed the average revenues generated pursuant to Part 10 (commencing with Section 17001) and Part 11 (commencing with Section 23001), less refunds, for the prior five fiscal years.(2) The transfer in paragraph (1) shall be adjusted for inflation as follows:(A) The California Department of Industrial Relations shall transmit annually to the Controller the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current calendar year, no later than August 1 of the current calendar year.(B) The Controller shall do both of the following:(i) Compute an inflation adjustment factor by adding 100 percent to the percentage change figure that is furnished pursuant to paragraph (1) and dividing the result by 100.(ii) Multiply the five-year average revenues by the inflation adjustment factor determined in clause (i) and round off the resulting products to the nearest one dollar ($1).
19501.5. (a) Notwithstanding any other law, all revenues collected pursuant to Part 10 (commencing with Section 17001) and Part 11 (commencing with Section 23001), less refunds, shall be deposited into the Income and Franchise Tax Fund, which is hereby created in the State Treasury.
(b) (1) The Controller shall annually transfer from the Income and Franchise Tax Fund to the General Fund an amount not to exceed the average revenues generated pursuant to Part 10 (commencing with Section 17001) and Part 11 (commencing with Section 23001), less refunds, for the prior five fiscal years.
(2) The transfer in paragraph (1) shall be adjusted for inflation as follows:
(A) The California Department of Industrial Relations shall transmit annually to the Controller the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current calendar year, no later than August 1 of the current calendar year.
(B) The Controller shall do both of the following:
(i) Compute an inflation adjustment factor by adding 100 percent to the percentage change figure that is furnished pursuant to paragraph (1) and dividing the result by 100.
(ii) Multiply the five-year average revenues by the inflation adjustment factor determined in clause (i) and round off the resulting products to the nearest one dollar ($1).
(a)In the case of a taxpayer who transports an agricultural product donated in accordance with Chapter 5 (commencing with Section 58501) of Part 1 of Division 21 of the Food and Agricultural Code, for taxable years beginning on or after January 1, 1996, there shall be allowed as a credit against the net tax (as defined by Section 17039), an amount equal to 50 percent of the transportation costs paid or incurred by the taxpayer in connection with the transportation of that donated agricultural product.
(b)If any credit allowed by this section is claimed by the taxpayer, any deduction otherwise allowed under this part for that amount of the cost paid or incurred by the taxpayer which is eligible for the credit that is claimed shall be reduced by the amount of the credit allowed.
(c)Upon delivery of the donated agricultural product by a taxpayer authorized to claim a credit pursuant to subdivision (a), the nonprofit charitable organization shall provide a certificate to the taxpayer who transported the agricultural product. The certificate shall contain a statement signed and dated by a person authorized by that organization that the product is donated under Chapter 5 (commencing with Section 58501) of Part 1 of Division 21 of the Food and Agricultural Code. The certificate shall also contain the following information: the type and quantity of product donated, the distance transported, the name of the transporter, the name of the taxpayer donor, and the name and address of the donee. Upon the request of the Franchise Tax Board, the taxpayer shall provide a copy of the certification to the Franchise Tax Board.
(d)In the case where any credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding years if necessary, until the credit has been exhausted.