SB 503: Personal income taxes: voluntary tax contribution funds.

Existing law allows an individual, until January 1, 2018, to designate on his or her personal income tax return that a specified amount in excess of his or her tax liability be contributed to the Keep Arts in Schools Fund, which is subject to appropriation by the Legislature, to be allocated to the Franchise Tax Board, the Controller, and the Arts Council for purposes of carrying out its provisions. Existing law requires that the Keep Arts in Schools Fund equal or exceed a $250,000 minimum contribution amount, which is required to be adjusted for inflation.

Existing law allows an individual, until January 1, 2019, to designate on their personal income tax return that a specified amount in excess of their tax liability be contributed to the California Beach and Coastal Enhancement Account under a space on the tax return titled Protect Our Coast and Oceans Fund. Existing law makes these moneys subject to appropriation by the Legislature and requires the moneys to be allocated to the Franchise Tax Board, the Controller, and the California Coastal Commission to support eligible programs awarded grants under the selection criteria established by the California Coastal Commission for the Whale Tail Grants Program. Existing law requires that the Protect Our Coast and Oceans Fund equal or exceed a $250,000 minimum contribution amount, which is required to be and has been adjusted for inflation.

Under existing law, there are general administrative provisions applicable to these voluntary contributions, which, among other things, specify when a voluntary contribution is to be placed on the return, provide for the disbursement of contributions following repeal of the fund provisions, and require undesignated funds to be transferred to the General Fund.

Existing law requires that when establishing or extending the operation of these voluntary tax contribution funds the words voluntary tax contribution be included in the name of the fund, that the administering agency comply with specified Internet Web site reporting requirements, that the fund provisions remain in effect only until January 1 of the 7th calendar year following the first appearance of the voluntary tax contribution on the personal income tax return, that the required calendar year minimum contribution amount for the fund to continue appearing on the return is $250,000, and that the contributions be continuously appropriated from the fund to the administering entity.

This bill would conform with those requirements by extending the operation of the provisions of the Keep Arts in Schools Fund to January 1, 2025, renaming the fund as the Keep Arts in Schools Voluntary Tax Contribution Fund, continuously appropriating the fund to the Franchise Tax Board, the Controller, and the Arts Council for purposes of carrying out these provisions, and requiring the Arts Council to comply with those Internet Web site reporting requirements. The bill would similarly conform with those requirements by extending the operation of the provisions of the Protect Our Coast and Oceans Fund to January 1, 2025, renaming the designation as the Protect Our Coast and Oceans Fund Voluntary Tax Contribution Fund, continuously appropriating those funds to the Franchise Tax Board, the Controller, and the California Coastal Commission for purposes of carrying out these provisions, and requiring the California Coastal Commission to comply with those Internet Web site reporting requirements. The bill would also require both funds described above to meet an unadjusted minimum contribution amount of $250,000, as specified. The bill would also delete various duplicative provisions covered by the aforementioned general administrative provisions. By continuously appropriating the funds described above, the bill would make an appropriation.