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<ns0:Id>20250SB__107399INT</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-13</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>
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<ns0:House>SENATE</ns0:House>
<ns0:Name>Smallwood-Cuevas</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 voluntary contributions. </ns0:Title>
<ns0:RelatingClause>voluntary contributions</ns0:RelatingClause>
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<ns0:Subject>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 Black Cultural District Voluntary Tax Contribution Fund, which would be created by this bill, the funds of which would be available upon appropriation. 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. The bill would make these provisions operative only until January 1, 2031, as specified.</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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(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. In the
event that 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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<html:p>There is in the State Treasury the Black Cultural District Voluntary Tax Contribution Fund to receive contributions made pursuant to Section 18726. 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. 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.</html:p>
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<ns0:Num>18728.</ns0:Num>
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(a)
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All money transferred to the Black Cultural District Voluntary Tax Contribution Fund, upon appropriation by the Legislature, shall be allocated as follows:
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(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.
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(2)
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To the Arts Council.
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(b)
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The money transferred to the Black Cultural District
Voluntary Tax Contribution Fund pursuant to Section 18727, and allocated pursuant to paragraph (2) of subdivision (a), shall be used to construct and maintain the Black Cultural District designated in south City of Los Angeles for the following purposes:
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<html:p>
(1)
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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.
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<html:p>
(2)
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Increase the visibility of local artists and community participation in local arts and culture.
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(3)
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Promote socioeconomic and ethnic diversity.
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<ns0:LawSection id="id_0323FF58-40B3-4B30-8FDC-840F4CE516E0">
<ns0:Num>18729.</ns0:Num>
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<html:p>
(a)
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This article shall remain in effect only until January 1, 2031, and as of that date is repealed, unless a later enacted statute, which is enacted before January 1, 2031, deletes or extends that date.
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<html:p>
(b)
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(1)
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If the repeal date specified in subdivision (a) has been deleted and if, thereafter, in any calendar year the Franchise Tax Board estimates by September 1 that contributions described in this article made on returns filed in that calendar year will be less than the minimum contribution amount prescribed by paragraph (2), then this article is inoperative with respect to taxable years beginning on and after January 1 of that calendar year. The Franchise
Tax Board shall estimate the annual contribution amount by September 1 of each year using the actual amounts known to be contributed and an estimate of the remaining year’s contributions.
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(2)
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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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