Income taxes: voluntary contributions: Municipal Shelter Spay-Neuter Fund.

Existing income tax laws allow individual taxpayers to contribute amounts in excess of their tax liability for the support of specified funds. This bill would allow a taxpayer to designate on a tax return that a specified amount in excess of his or her tax liability be transferred to the Municipal Shelter Spay-Neuter 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 the return. This bill would provide that all money contributed to the fund pursuant to these provisions, upon appropriation by the Legislature, be allocated to the Franchise Tax Board and the Controller for reimbursement of costs, as provided, and to the Department of Food and Agriculture for distribution of grants to eligible municipal shelters on a first-come-first-served basis, as specified, for the purposes of providing low cost or free spay-neuter services and for administrative costs. This bill would require eligible municipal shelters, as defined, in order to receive a grant, to file an application with the Department of Food and Agriculture, as specified. This bill would provide that these voluntary contribution provisions are repealed on either January 1 of the 5th taxable year following the taxable year the fund first appears on the personal income tax return, or on January 1 of an earlier calendar year, if the Franchise Tax Board estimates that the annual contribution amount will be less than $250,000, or an adjusted amount for subsequent taxable years. This bill would make legislative findings and declarations regarding the importance of informing taxpayers that they may make voluntary contributions to certain funds or programs on state income tax returns, and would state the intent of the Legislature to encourage all persons who prepare state income tax returns to inform their clients in writing, prior to the completion of any state income tax return, that they may make a contribution to any voluntary contribution checkoff on the state income tax return.