Income taxes: investment management services interest: education funding.

The Personal Income Tax Law imposes taxes based upon taxable income of individuals, estates, and trusts at specified rates from 1% to 9.3%, as provided. This bill would impose a tax of 17% on that portion of an individual's taxable income derived from an investment management services interest, as defined. The bill would require the Franchise Tax Board to report to the Legislature, no more than 30 days thereafter, if the United States Congress passes and the President of the United States signs legislation having an identical effect as the above-described tax applicable to that income earned in all of the states and territories, and would further require the Legislature to determine whether to repeal, make inoperative, or continue in effect the tax. The bill would also require the revenues derived from this tax to be deposited in the College, Career, and Community Ready Fund, which the bill would establish. The bill would require the moneys deposited in the College, Career, and Community Ready Fund to be continuously appropriated to the State Department of Education for apportionment to local educational agencies for designated categories of programs, thereby making an appropriation. The bill would authorize the department to adopt regulations and procedures to implement these provisions of the bill relating to the distribution of the apportioned funds and to effectuate the intent of the Legislature as to the distribution of these funds among those categories. The bill would also authorize the Franchise Tax Board to prescribe rules, guidelines, or procedures necessary or appropriate to carry out the purposes of the bill, as specified. The funds apportioned to local educational agencies pursuant to this bill for the specified purposes would be applied toward the minimum funding requirements for school districts and community college districts imposed by Section 8 of Article XVI of the California Constitution. This bill would declare that it is to take effect immediately as an urgency statute.