LEGISLATIVE COUNSEL'S DIGEST


AB 1088, as amended, Fletcher. Taxpayer contributions: California
Veterans Homes Fund.
Under existing law regulating the administration of the Personal
Income Tax Law, individual taxpayers are allowed to contribute
amounts in excess of their tax liability for the support of specified
funds or accounts, including, among others, the Veterans' Quality of
Life Fund. Existing law requires the expenditure of all moneys
contributed to the fund, upon appropriation by the Legislature, for
administrative costs and for distribution into the Morale, Welfare,
and Recreation Fund for each of the veterans homes, as provided.
This bill would repeal those provisions, and instead allow
individuals to designate on their tax returns that a specified amount
in excess of their tax liability be transferred to the California
Veterans Homes Fund, which would be created by this bill. However,
the bill would provide that a voluntary contribution designation for
this fund may not be added on the tax return until another voluntary
contribution designation is removed from that return.
This bill would, like the expenditure of all moneys contributed to
the Veterans' Quality of Life Fund, require the expenditure of all
moneys contributed to the California Veterans Homes Fund, upon
appropriation by the Legislature, for administrative costs and for
distribution into the Morale, Welfare, and Recreation Fund for each
of the veterans homes, as provided. This bill would require any funds
remaining in the Veterans' Quality of Life Fund to be transferred to
the California Veterans Homes Fund.
This bill would provide that these voluntary contribution
provisions be repealed on January 1 of the 5th taxable year following
the taxable year the fund first appears on the personal income tax
return. This bill would further provide that these provisions would
be repealed for taxable years beginning on or after January 1 of the
calendar year in which the Franchise Tax Board estimates by September
1 that the contributions made on returns filed in that calendar year
will be less than $250,000, or an adjusted amount for subsequent
taxable years.