Personal Income Tax Law: Corporation Tax Law: administration: Income Tax Stabilization Fund.

The Personal Income Tax Law and the Corporation Tax Law impose taxes based upon taxable income at specified rates. Existing law requires all moneys and remittances received by the Franchise Tax Board as amounts imposed under those laws, except as provided, to be deposited into the Personal Income Tax Fund or the Corporation Tax Fund, as specified. Existing law requires amounts deposited into the Personal Income Tax Fund and the Corporation Tax Fund to be drawn upon for the purpose of making refunds or be transferred to the General Fund. This bill would create the Income Tax Stabilization Fund in the State Treasury, to be administered by the Franchise Tax Board. The bill would require amounts deposited in the Personal Income Tax Fund and the Corporation Tax Fund to be drawn upon for the purpose of making refunds or be transferred to the Income Tax Stabilization Fund instead of the General Fund. The bill would require the Controller to annually transfer from the Income Tax Stabilization Fund to the General Fund an amount not to exceed the average amounts deposited in the Personal Income Tax Fund and the Corporation Tax Fund, less refunds, over the prior 5 fiscal years. The bill would adjust the amount of the transfer for inflation, as provided.