LEGISLATIVE COUNSEL'S DIGEST


AB 1088, as introduced, Fletcher. Taxpayer contributions: ___
Fund.
Under existing law regulating the administration of personal
income taxes and corporation taxes, 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
taxpayers to designate on their tax returns that a specified amount
in excess of their tax liability be transferred to the ___ 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 ___ 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 ___ Fund.
This bill would provide that these voluntary contribution
provisions would be repealed on January 1 of the 5th taxable year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provisions would be repealed for taxable years beginning on or after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.