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<ns0:Id>20250SB__107398AMD</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-13</ns0:ActionDate>
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<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2026-03-19</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Smallwood-Cuevas</ns0:AuthorText>
<ns0:AuthorText authorType="PRINCIPAL_COAUTHOR_OPPOSITE">(Principal coauthor: Assembly Member Bryan)</ns0:AuthorText>
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<ns0:Legislator>
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<ns0:House>SENATE</ns0:House>
<ns0:Name>Smallwood-Cuevas</ns0:Name>
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<ns0:Name>Bryan</ns0:Name>
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<ns0:Title> An act to add and repeal Article 3.5 (commencing with Section 18726) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, relating to taxation, and making an appropriation therefor.</ns0:Title>
<ns0:RelatingClause>taxation, and making an appropriation therefor</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Income taxes: voluntary contributions: Black Cultural District Voluntary Tax Contribution Fund.</ns0:Subject>
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<html:p>Existing law allows an individual taxpayer to contribute amounts in excess of their personal income tax liability for the support of specified funds and accounts, including, among others, to the Native California Wildlife Rehabilitation Voluntary Tax Contribution Fund. </html:p>
<html:p>This bill would allow an individual to designate on their tax return that a specified amount in excess of their tax liability be transferred to the continuously appropriated Black Cultural District Voluntary Tax Contribution Fund (fund), which would be
created by this bill. The bill would allocate moneys in the fund to, among other entities, the Arts Council for allocation for the construction and maintenance of the Black Cultural District designated in south City of Los Angeles. The bill would require the Franchise Tax Board to revise the tax return form to include a space for the designation of contributions to the fund. By establishing a new continuously appropriated fund, the bill would make an appropriation.</html:p>
<html:p>This bill would provide that these provisions would remain operative only until January 1 of the 7th calendar year following the first appearance of the fund on the tax return, but would further provide for an earlier repeal if the Franchise Tax Board determines that the amount of contributions estimated to be received during the 2nd and later calendar years after its first appearance on a return will not at least equal the minimum contribution amount, in which case these provisions would be repealed on December 1 of that year.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Article 3.5 (commencing with Section 18726) is added to Chapter 3 of Part 10.2 of Division 2 of the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
, to read:
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<ns0:Num>3.5.</ns0:Num>
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<ns0:LawHeadingText>Black Cultural District Voluntary Tax Contribution Fund</ns0:LawHeadingText>
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<ns0:Num>18726.</ns0:Num>
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(a)
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Any individual may designate on the tax return that a contribution in excess of the tax liability, if any, be made to the Black Cultural District Voluntary Tax Contribution Fund, which is established by Section 18727. That designation is to be used as a voluntary checkoff on the tax return.
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<html:p>
(b)
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The contributions shall be in full dollar amounts and may be made individually by each signatory on the joint return.
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<html:p>
(c)
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A designation shall be made for any taxable year on the initial return for that
taxable year, and once made shall be irrevocable. If payments and credits reported on the return, together with any other credits associated with the taxpayer’s account, do not exceed the taxpayer’s liability, the return shall be treated as though no designation has been made. In the event that no designee is specified, the contribution shall be transferred to the General Fund, after reimbursement of the direct actual costs of the Franchise Tax Board for the collection and the administration of funds under this article.
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<html:p>
(d)
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In the event a taxpayer designates a contribution to more than one account or fund listed on the tax return, and the amount available for designation is insufficient to satisfy the total amount designated,
the contribution shall be allocated among the designees on a pro rata basis.
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(e)
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The Franchise Tax Board shall revise the form of the return to include a space labeled the “Black Cultural District Voluntary Tax Contribution Fund” to allow for the designation permitted. The form shall also include in the instructions information that the contribution may be in the amount of one dollar ($1) or more and that the contribution shall be used to construct and maintain the Black Cultural District designated in south City of Los Angeles.
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(f)
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A deduction shall be allowed under Article 6 (commencing with Section 17201) of Chapter 3 of Part 10 for any contribution made pursuant to subdivision (a).
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<ns0:Num>18727.</ns0:Num>
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(a)
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There is hereby established in the State Treasury the Black Cultural District Voluntary Tax Contribution Fund to receive contributions made pursuant to Section 18726.
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<html:p>
(b)
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The
Franchise Tax Board shall notify the Controller of both the amount of money paid by taxpayers in excess of their tax liability and the amount of refund money that taxpayers have designated pursuant to Section 18726 to be transferred to the Black Cultural District Voluntary Tax Contribution Fund.
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(c)
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The Controller shall transfer from the Personal Income Tax Fund to the Black Cultural District Voluntary Tax Contribution Fund an amount not in excess of the sum of the amounts designated by individuals pursuant to Section 18726 for payment into that fund.
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<ns0:Num>18728.</ns0:Num>
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<html:p>
(a)
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Notwithstanding Section 13340 of the Government Code, all moneys transferred to the Black Cultural District Voluntary Tax Contribution Fund shall be continuously appropriated and allocated as follows:
</html:p>
<html:p>
(1)
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To the
Franchise Tax Board and the Controller for reimbursement of all costs incurred by the Franchise Tax Board and the Controller in connection with their duties under this article.
</html:p>
<html:p>
(2)
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To the Arts Council for allocation for the construction and maintenance of the Black Cultural District designated in south City of Los Angeles to support the following purposes:
</html:p>
<html:p>
(A)
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Celebrate the diversity of California while unifying under an umbrella of shared values, and help to grow and sustain authentic grassroots arts and cultural opportunities.
</html:p>
<html:p>
(B)
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Increase the visibility of local artists and community participation in local arts and culture.
</html:p>
<html:p>
(C)
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Promote socioeconomic and ethnic diversity.
</html:p>
<html:p>
(b)
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The Arts Council shall report on its internet website information provided by its grantee, if any, regarding the process for awarding money, the amount of money spent on administration,
and an itemization of how program funds were awarded.
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<ns0:LawSection id="id_CFCF857C-D0E1-43D7-A373-8751A544D24C">
<ns0:Num>18729.</ns0:Num>
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<html:p>
(a)
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Except as otherwise provided in subdivision (b), this article shall remain operative only until January 1 of the seventh calendar year following the first appearance of the Black Cultural District Voluntary Tax Contribution Fund on the tax return, and is repealed as of December 1 of that year.
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<html:p>
(b)
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(1)
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By September 1 of the second calendar year and by September 1 of each subsequent calendar year that the Black Cultural District Voluntary Tax Contribution Fund appears on the tax return, the Franchise Tax Board shall determine whether the amount of contributions estimated to be received during the
calendar year will equal or exceed the minimum contribution amount for the calendar year. 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.
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<html:p>
(2)
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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.
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<html:p>
(3)
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For purposes of this section, “minimum contribution amount” means two hundred fifty thousand dollars ($250,000) for any calendar year.
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(c)
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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.
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