§ 18898. — 18898. (Amended by Stats. 2021, Ch. 96, Sec. 5.)

California § 18898.

• Jurisdiction: California
• Code RTC: Revenue and Taxation Code - RTC
• Div. 2.: DIVISION 2. OTHER TAXES
• Part 10.2.: PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS
• Ch. 3.: CHAPTER 3. Voluntary Contributions
• Art. 20.: ARTICLE 20. School Supplies for Homeless Children Voluntary Tax Contribution Fund

Text

(a)
Except as otherwise provided in subdivision (b), this article shall remain in effect only until January 1, 2029, and is repealed as of December 1 of that year.
(b)
(1)
By September 1 of the second calendar year and each subsequent calendar year that the School Supplies for Homeless Children Voluntary Tax Contribution Fund appears on the tax return, the Franchise Tax Board shall do all of the following:
(A)
Determine the minimum contribution amount required to be received during the next calendar year for the fund to appear on the tax return for the taxable year that includes that next calendar year.
(B)
Provide
written notification to the State Department of Social Services of the amount determined in subparagraph (A).
(C)
Determine whether the amount of contributions estimated to be received during the calendar year will equal or exceed the minimum contribution amount determined by the Franchise Tax Board for the calendar year pursuant to subparagraph (A). 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shall be repealed on December 1 of that year.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) for the second calendar year after the first appearance of the School Supplies for Homeless Children Voluntary Tax Contribution Fund on the personal income tax return or the adjusted minimum contribution amount adjusted pursuant to subdivision (c).
(c)
For each calendar year, beginning with the third calendar year after the first appearance of the School Supplies for Homeless Children Voluntary Tax Contribution Fund on the personal income tax return, the Franchise Tax Board shall adjust, on or before September 1 of that calendar year, the minimum contribution amount specified in subdivision (b) as follows:
(1)
The minimum estimated
contribution amount for the calendar year shall be an amount equal to the product of the minimum estimated contribution amount for the calendar year multiplied by the inflation factor adjustment as specified in subparagraph (A) of paragraph (2) of subdivision (h) of Section 17041, rounded off to the nearest dollar.
(2)
The inflation factor adjustment used for the calendar year shall be based on the figures for the percentage change in the California Consumer Price Index for all items received on or before August 1 of the calendar year pursuant to paragraph (1) of subdivision (h) of Section 17041.
(d)
Notwithstanding the repeal of this article, any contribution amounts designated pursuant to this article prior to its repeal shall continue to be transferred and disbursed in accordance with this article as in effect immediately prior to that
repeal.

Legislative History

Amended by Stats. 2021, Ch. 96, Sec. 5. (AB 742) Effective January 1, 2022. Repealed on December 1, 2029, by subd. (a), or on earlier date prescribed in subd. (b). Note: Termination provisions affect Article 20, commencing with Section 18895.