HomeMy WebLinkAboutMINUTES - 04181989 - 1.22 M
Z z.
Y 0. Board of Supervisors
FROM: Phil Batchelor, County Administrator
OST,--
DATE: April 12, 1989 a cou 1
SUBJECT: LEGISLATION: AB 1514 (Frizzelle & Speier)
Specific Request(s) or Recommendations(s) & Background & Justification
RECOMMENDATION
Adopt a position in SUPPORT of AB 1514 by Assemblyman Frizzelle and Assemblywoman Speier
which provides an income tax deduction equal to 80% of the cost to an employee of operating a van
or other carpooling vehicle. The bill also provides a tax credit of between 1 and 1/4 % and 10% of
an employee's income for using a car-pool, vanpool or public transportation to get to work,
depending on the number of weeks during a year the employee using a carpool, vanpool or public
transportation.
REASONS FOR RECOMMENDATION/BACKGROUND
AB 1514 is essentially identical to AB 2859 which Assemblyman Frizzelle carried unsuccessfully
during the 1988 Session of the Legislature. The Board of Supervisors supported AB 2859 last year
and has been asked by Assemblyman Frizzelle to support AB 1514 this year. A copy of the Board's
order supporting AB 2859 and a copy of AB 1514 are attached to this report. Because of the
substantial leadership provided by the Board in the past to carpool efforts,it appears appropriate for
the Board to support AB 1514 and indicate this support to Assemblyman Frizzelle and
Assemblywoman Speier.
CONTINUED ON ATTACHMENT: YES SIGNATURE: G if
Recommendation of County Administrator Recommendation of Board Committee
Approve Other.-
Signature(s):
ther:Signature(s)• � � A . 11&. �/- -�
Action of Board on: April 18. 1989 Approved as Recommended_ C Other
Vote of Supervisors
I HEREBY CERTIFY THAT THIS IS A TRUE AND
X Unanimous(Absent ) CORRECT COPY OF AN ACTION TAKEN AND
Ayes: Noes: ENTERED ON HE MINUTES OF THE BOARD
Absent: Abstain: OF SUPERVISORS ON DATE SHOWN.
cc: County Administrator ATTESTED APR 1 a]gag
Community Development Director PHIL BATCHELOR,CLERK OF THE BOARD
Public Works Director SUPERVISORS AND COUNTY ADMINISTRATOR
Assemblyman Frizzelle
Assemblywoman Speier BY: ,Deputy Clerk
Les Spahnn,Jackson/Barish &Associates
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CALIFORNIA LEGISLATURE-1989-90 REGULAR SESSION
ASSEMBLY BILL No. 1514
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Introduced by Assembly Members Frizzelle and Speier
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March 8, 1989
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An act to amend Section 17073 of, and to add and repeal
Sections 17053.29, 17073.6, and 23629 of, the Revenue and
Taxation Code, relating to taxation, to take effect
immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1514, as introduced, Frizzelle. Income taxes: bank and
corporation taxes: credits or deductions: ridesharing.
The existing Personal Income Tax Law and Bank and
Corporation Tax Law provide various deductions from
income and credits against taxes.
This bill would provide under the Personal Income Tax
Law a deduction in computing adjusted gross income, in an
amount equal to 80% of the costs incurred by an employee to
operate a van or other carpooling vehicle to carpool
employees to and from work. It would provide a tax credit
under that law- to a qualified employee, as defined, who
commutes to and from work in carpools, vanpools, or public
transportation in specified amounts based upon the number
of points earned during the taxable year.
This bill would provide under the Bank and Corporation
Tax Law a tax credit in an amount equal to 20% of the
operating expenses incurred by an employer for an 4
employer-sponsored ridesharing incentive program, as
defined. It would provide an additional credit to specified
employers in an amount equal to 20% of specified
administrative costs.
This bill would provide the above deductions and credits
for taxable or income years beginning on or after January 1,
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AB 1514 — 2-
1989, and before January 1,- 1994. It would repeal those
provisions on December 1, 1994, unless a later enacted statute
extends or repeals that date.
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 17053.29 is added to the
2 Revenue and Taxation Code, to read:
3 17053.29. (a) For taxable years beginning on or after
4 January 1, 1989, and before January 1, 1994, there shall be
5 allowed as a credit against the "net tax" (as defined by
6 Section 17039) an amount equal to the amount
7 determined in subdivision .(b) .
8 (b) A credit shall be allowed to a qualified employee
9 who commutes to and from work in carpools, vanpools, or
10 public transportation in an amount equal to the
11 following:
12 (1) Ten percent of the amount of thequalified
13 employee's earned income directly related to
14 employment within California to which the qualified
.15 employee commutes using carpools, vanpools, or public
16 transportation if the qualified employee earns 144 points
17 during the taxable year.
18 (2) Five percent of the amount of the qualified
19 employee's earned income directly related to
20 employment within California to which the qualified
21 employee commutes using carpools, vanpools, or public
22 transportation if the qualified employee earns at least 72
23 points during the taxable year.
24 (3) Two and one-half percent of the amount of the
25 qualified employee's earned income directly related to
26 employment within California to which the qualified
27 employee commutes using carpools, vanpools, or public
28 transportation if the qualified employee earns at least 36
29 points during the taxable year.
30 (4) One and one-quarter percent of the amount of the
31 qualified employee's earned income directly related to
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epeal those 1 employment within California to which the qualified
tcted statute 2 employee commutes using carpools, vanpools, or public
3 transportation if the qualified employee earns at least 18
ix levy. 4 points during the taxable year.
.mittee: yes. 5 (c) For purposes of this section, points shall be earned
6 as follows:
7 (1) A qualified employee shall earn six points for each
�s follows: 8 two-week period that the qualified employee commutes
9 to and from work in carpools, vanpools, or public
�.ed to the 10 transportation.
11 (2) A qualified employee shall be deemed to have met
on or after 12 the requirements of paragraph (1) if that employee
sere shall be 13 commutes to and from work in carpools or public
defined by 14 transportation at least four times per week for two
he amount 15 consecutive weeks.
16 (3) A qualified employee shall substantiate the points
!d employee 17 earned as follows:
vanpools, or 18 (A) By keeping a contemporaneous log of each
ual to the 3 19 commute to and from work made in a carpool.
20 (B) By saving receipts, tickets, or other evidence that
ie qualified 21 public transportation was used for commuting to and
related to 22 from work.
ze qualified 23 (4) For the purpose of earning points, the two-week
1s, or public 24 period is deemed to begin on Monday of the first week
is 144 points 25 and end on the second following Friday.
26 (d) For purposes of this section:
ie qualified 27 (1) "Carpool" means two or more persons commuting
related to 28 on a daily basis to and from work by means of a vehicle
Lie qualified 29 with a seating arrangement designed to carry less than
ls, or public 30 seven adults, including the driver.
is at least 72 31 (2) "Public transportation" means transportation
32 service for use by the general public that utilizes buses,
Lount of the 33 railcars, or ferries with a seating capacity of 16 or more
y related to :. 34 persons.
-ie qualified 35 (3) "Qualified employee" means an individual who
ls, or public 36 performs service for an employer for more than 30 hours
is at least 36 37 per week for remuneration.
38 (4) " Vanpool" means two or more persons
nount of the 39 commuting on a daily basis to and from work by means
y related to 40 of a privately owned vehicle with a seating arrangement
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AB 1514 — 4 -
1
4 -1 designed to carry less than 15 persons, including the
2 driver.
3 (e) In the case where the credit allowed by this section
4 exceeds the "net tax," the excess may be carried over to
5 reduce the "net tax" in the following year, and
6 succeeding years if necessary, until the credit has been
7 exhausted.
8 (f) This section shall remain in effect only until
9 December 1, 1994, and as of that date is repealed.
10 However, any unused credit may continue to be carried
11 forward, as provided in subdivision (e) , until the credit
12 has been exhausted.
13 SEC. 2. Section 17073 of the Revenue and Taxation _
14 Code is amended to read:
15 17073. (a) Taxable income shall be defined by
16 Section 63 of the Internal Revenue Code, except as
17 otherwise provided.
18 (b) For individuals who do not itemize deductions, the
19 standard deduction computed in accordance with
20 Section 17073.5 shall be allowed as a deduction in
21 computing taxable income.
22 (c) A deduction computed in accordance with Section
23 17073.6 shall. be allowed as a deduction in computing
24 taxable income.
25 SEC. 3. Section 17073.6 is added to the Revenue and ? �.
26 Taxation Code, to read:
27 17073.6. (a) There shall be allowed as a deduction in
28 computing adjusted gross income for the taxable year, an
29 amount equal to 80 percent of the costs paid or incurred
30 by an employee to operate a van or other carpooling
31 vehicle to carpool employees to and from work.
32 (b) No deduction shall be allowed under this section
33 for the direct cost of purchasing or leasing a carpooling
34 vehicle.
35 (c) "Carpool" means two or more persons commuting
36 to and from work by means of a vehicle with a seating
37 arrangement designed to carry less than seven adults,
38 including the driver.
39 (d) In order to be eligible for the deduction allowed
40 by this section, the taxpayer must substantiate the costs
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Aing the 1 on which the deduction is based in the manner and form
2 prescribed by the Franchise Tax Board.
is section 3 (e) (1) This section shall not apply to taxable years
d over to 4 beginning on or after January 1, 1994.
ear, and 5 (2) This section shall remain in effect only until
has been 6 December 1, 1994, and as of that date is repealed, unless
7 a later enacted statute, which is enacted before
.nly until 8 December 1, 1994, deletes or extends that date.
repealed. 9 SEC. 4. Section 23629 is added to the Revenue and
)e carried 10 Taxation Code, to read:
.he credit 11 23629. (a) For income years beginning on or after
12 January 1, 1989, and before January 1, 1994, there shall be
Taxation 18 allowed as a credit against the "tax" (as defined by
14 Section 23036) an amount equal to the amount
fined by 15 determined in subdivision (b) -
except as 16 (b) The amount of credit allowed by this section shall
17 be as follows:
-tions, the 18 (1) Twenty percent of the operating expenses
ice with 19 incurred by an employer for an employer-sponsored
action in 20 ridesharing incentive program which is not mandated, or
21 otherwise required to be implemented, by a local agency.
h Section 22 (2) An additional credit shall be allowed to employers
)mputing 23 with fewer than 250 employees in an amount equal to 20
24 percent of the administrative costs incurred by the
:,,nue and 25 employer to comply with the substantiation
26 requirements specified in subdivision (c) .
uction in 27 (c) In order to be eligible for the credit under this
year, an 28 section, an employer must substantiate the costs for
incurred 29 which the credit is claimed as follows:
Lrpooling 30 (1) Employers with 500 or more employees shall
31 substantiate the costs by making reports on magnetic
s section 32 media or in other machine-readable form, according to
.rpooling 33 standards prescribed by forms and instructions by the
34 Franchise Tax Board.
nmuting 35 (2) Employers with fewer than 500 employees shall
.t seating 36 substantiate the costs in the form and manner prescribed
a adults, 37 by the Franchise Tax Board.
38 (d) "Employer-sponsored ridesharing program"
allowed 39 means a program undertaken by an employer either
he costs 40 alone or in cooperation with other employers to
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AB 1514 — 6 -
1
or encourage provide, or both, fiscal or other incentives
2 to employees to make the home-to-work commute trip
3 by any mode other than the single-occupant motor
4 vehicle.
5 (e) In the case where the credit allowed by this section
6 exceeds the "tax," the excess may be carried over to
7 reduce the "tax" in the following year, and succeeding
8 years if necessary, until the credit has been exhausted..
9 (f) This section shall remain in effect only until
10 December 1, 1994, and as of that date is repealed.
11 However, any unused credit may continue to be carried
12 forward, as provided in subdivision (e) , until the credit
13 has been exhausted. -
14 SEC. 5. This act provides for a tax levy within the
15 meaning of Article IV of the Constitution and shall go into
16 immediate effect.
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