HomeMy WebLinkAboutMINUTES - 02231999 - C63 TO: BOARD OF SUPERVISORS
FROM: TRANSPORTATION WATER AND INFRASTRUCTURE COMMITTEE
GATE: February 1, 1999
SUBJECT: Ades t Position of Support for SB 17 (Figueroa) Transit Pass Tax Credit.
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIQNa
ADOPT position of SUPPORT on 5817 (Figueroa) Transit Pass Tax Credit.
ISGAL IMPACT
None to the General Fund,
3L►NERI=ASON; F0Q R COM ENDATIQNS
This is similar to.a bill introduced last year in the Assembly that would establish a tax credit from
1999 to 2003 in an amount equal to 40 percent of the cost pari or incurred by employers for
providing public transportation passes to an employee. It would require the California Research
Bureau to report to the legislature on this credit. The Committee's recommendation is the same
position; that the Board adopted last year on the similar bill.
CONTINUED ON ATTACHMENT: YES SIGNATURE
_ RECOMMENDATION OF COUNTY ADMINISTRATOR
X RECOMMENDATION OF BOARD COMMITTEE
_APPROVE
OTHER i g
SIGNATURES : Supervisor Dein erber, Chair Su ervisor Mark DeSaulnier
ACTION OF BOARD ON Fan 3,0.0 APPROVED AS RECOMMENDED xgc OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
UNANIMOUS (ABSENT - TRUE AND CORRECT COPY OF AN
AYES: _ ____ NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT:-ABSTAIN: - MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
Contact Persson, Steven Goetz, 335-1240 ATTESTED Eajn = 2,--1992 _-- -
Orig: Community Development PHIL BATCHELOR, CLERK OF
Public Works, T.E. THE BOARD OF SUPERVISORS
D,J. Smith (via CDD) AND COUNTY ADMINISTRATOR
State Legislative Delegation (via CDD) bws
By
DEPUTY
SLG,c;tsb17.bo
AMENDED IN SENATE FEBRUARY 9, 1999
SENATE BILL No. 17
Introduced by Senator Figueroa
(Principal coauthor. Senator Murray)
(Principal coauthors:Assembly Members Cunneen and
Honda)
(Coauthors: Senators McPherson, Sher, Solis, and
Yasconcellos)
(Coauthors: Assembly Members Alquist, Briggs, Dutra,
House, Keeley, Lcmpert, Longville, .Mazzoni, Romero, and
Washington)
December 7, 1998
An act to add and repeal Sections 17053 and 23605 of the
Revenue and Taxation Code, relating to taxation, to take
effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 17, as amended, Figueroa. Income and bank and
corporation taxes. credits: transit passes.
The Personal Income Tax Law and the Bank and
Corporation Tax Law provided, for taxable and income years
beginning before January 1, 1996, a tax credit to employers in
specified amounts for the cost paid or incurred by them for
providing subsidized public transit passes to employees.
This bill would reinstate the operation of substantially
similar credits for taxable and income years beginning on or
after January 1, 1999, and before January 1, 2004.
The bill would also require the California Research Bureau
to report to the Legislature on the credit created by this bill.
98
-3— SB 17
1 shall be allowed as a credit against the "tax" (as defined
2 in Section 23036) of an amount equal to 40 percent of the
3 cost paid or incurred by an employer for providing
4 subsidized public transit passes or other subsidized public
5 transit fare media to an employee.
6 (b) If the credit allowed by this section exceeds the
7 "tax," the excess may be carried over to reduce the "tax."
9 neess �e it has been e�khattste in the
v 9
10 following year and succeeding 10 years if necessary, or
11 until the credit has been exhausted, whichever occurs
12 first.
13 (c) For purposes of this section:
14 (1) "Employer" means a taxpayer, except a
15 governmental agency, who employs an employee and for
16 whom services are performed by that employee.
17 (2) "Employee" means an individual residing in
18 California and employed by the taxpayer who performs
19 at least 10 hours per week of service for the taxpayer for
20 remuneration.
21 (d) The credit provided in this section shall be in lieu
22 of any deduction under this part to which the taxpayer
23 otherwise may be entitled for costs to which the credit
24 applies.
25 (e) This section shall remain in effect only until
26 December 1, 2004, and as of that date is repealed.
27 SEC. 3. The California Research Bureau shall submit
28 a report to the Legislature by January 1, 2003, on the tax
29 credit offered to employers for subsidized public transit
30 passes or tither subsidized public transit fare media in this
31 act. The report shall include the cost of the credit, the
32 number of transit passes or other public transit fare media
33 issued, and the total public transit ridership in California
34 in income years 1999 through 2001.
35 SEC. 4. This act provides for a tax levy within the
36 meaning of Article IV of the Constitution and shall go into
37 immediate effect.
d
98
SB 17 —2—
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
I SECTION 1. Section 17053 is added to the Revenue
2 and Taxation Code, to read:
3 17053. (a) For each taxable year beginning on or
4 after January 1, 1999, and before January 1, 2004, there
5 shall be allowed as a credit against the "net tax" (as
6 defined in Section 17039) of an amount equal to 40
7 percent of the cost paid or incurred by an employer for
8 providing subsidized public transit passes or other
9 subsidized public transit fare media to an employee,
10 (b) If the credit allowed by this section exceeds the
11 "net tax," the excess may be carried over to reduce the
12 "net tax" in the fellewing yee&s and the nem 444
13ftueeee4irtt years if neeessar),, until the eredif has been.
14 &Ehftsfed. "net tax" in the following year and succeeding
15 10 years if necessary, or until the credit has been
16 exhausted, whichever occurs first.
17 (c) For purposes of this section:
18 (1) "Employer" means a taxpayer, except a
19 governmental agency, who employs an employee and for
20 whom services are performed by that employee.
21 (2) "Employee" means an individual residing in
22 California and employed by the taxpayer who performs
23 at least 10 hours per week of service for the taxpayer for
24 remuneration.
25 (d) The credits provided in this section shall be in lieu
26 of any deduction under this part to which the taxpayer
27 otherwise may be entitled for costs to which the credit
28 applies.
29 (e) This section shall remain in effect only until
30 December 1, 2004, and as of that date is repealed.
11 SEC. 2. Section 23605 is added to the Revenue and
32 Taxation Code, to read:
33 23605. (a) For each income year beginning on or
34 after January 1, 1999, and before January 1, 2004, there
98