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Text of the Tax Rebate to Fight Crime Act

This bill was introduced on June 22, 1994, in a previous session of Congress, but was not enacted. The text of the bill below is as of Jun 22, 1994 (Introduced).

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S 2229 IS

103d CONGRESS

2d Session

S. 2229

To appropriate 2 percent of Federal individual income tax revenues to the States to fight crime.

IN THE SENATE OF THE UNITED STATES

June 22 (legislative day, JUNE 7), 1994

Mr. WALLOP introduced the following bill; which was read twice and referred to the Committee on the Judiciary


A BILL

To appropriate 2 percent of Federal individual income tax revenues to the States to fight crime.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ‘Tax Rebate to Fight Crime Act’.

SEC. 2. TRUST FUNDS TO FIGHT CRIME.

    (a) IN GENERAL- There is hereby appropriated to the Trust Fund To Fight Crime of each State for each fiscal year an amount equal to 2 percent of the net Federal individual income tax revenues for such fiscal year which are attributable to residents of such State.

    (b) TRUST FUND TO FIGHT CRIME- For purposes of this section, the term ‘Trust Fund To Fight Crime’ means any trust fund established by State law if the only expenditures permitted to be made from such trust fund are for--

      (1) paying police officers, including salary, overtime, and other personnel expenses,

      (2) building and operating prisons,

      (3) paying judges of courts handling criminal cases, prosecutors, and public defenders, including salary, overtime, and other personnel expenses, and

      (4) paying the rebates described in subsection (d) to taxpayers.

    (c) DEFINITION OF NET FEDERAL INDIVIDUAL INCOME TAX REVENUES- For purposes of this section, the term ‘net Federal individual income tax revenues’ means, with respect to any fiscal year, the excess of--

      (1) amounts received in the Treasury during such fiscal year from the taxes imposed on individuals under chapters 1 and 24 of the Internal Revenue Code of 1986, over

      (2) amounts of such taxes which are credited or refunded to taxpayers during such fiscal year.

    (d) Rebates From State Governments to Their Taxpayers-

      (1) VOLUNTARY REBATES- Amounts in the Trust Fund To Fight Crime of any State may be rebated (with interest) at any time to the individuals whose liabilities under chapters 1 and 24 of the Internal Revenue Code of 1986 were taken into account in determining the appropriation of the amount to be rebated. The amount rebated to any individual shall be the amount equal to--

        (A) the amount to be rebated, multiplied by

        (B) such individual’s proportionate share of such liabilities.

      (2) Mandatory rebates-

        (A) IN GENERAL- Amounts in the Trust Fund To Fight Crime of any State shall be rebated if--

          (i) such amounts are not spent for the purposes referred to in paragraphs (1), (2) and (3) of subsection (b) (or rebated under paragraph (1) of this subsection) within the 3-year period after the close of the fiscal year for which such amounts were appropriated to such Trust Fund, or

          (ii) such amounts are not spent for such purposes (or rebated under paragraph (1) of this subsection) within the 1-year period after the close of the fiscal year for which such amounts were appropriated to such Trust Fund unless, before the close of such 1-year period, the State has adopted a plan on how to spend such amounts and has spent at least 1/3 of such amounts for such purposes.

        In the case of amounts appropriated for the first fiscal year beginning after the date of the enactment of this Act, clause (ii) shall be applied by substituting ‘2-year period’ for ‘1-year period’ each place it appears.

        (B) REBATES- Any amount required to be rebated under this paragraph shall be paid (with interest) to the individuals whose liabilities under chapters 1 and 24 of the Internal Revenue Code of 1986 were taken into account in determining the appropriation of such amount. The amount rebated to any individual shall be the amount equal to--

          (i) the amount required to be rebated, multiplied by

          (ii) such individual’s proportionate share of such liabilities.

      (3) ORDERING RULES- For purposes of this subsection, expenditures from any Trust Fund To Fight Crime and rebates shall be treated as being made from deposits in the order in which made, beginning with the earliest deposits.

    (e) SPECIAL RULES- For purposes of this section:

      (1) TRANSFER OF AMOUNTS- Amounts appropriated by this section shall be transferred at least monthly from the general fund of the Treasury on the basis of estimates made by the Secretary of the Treasury of the amounts referred to in this section. Proper adjustments shall be made in the amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred.

      (2) RESIDENCE- An individual shall be treated as a resident of the State specified in the address shown on the return of tax imposed by chapter 1 of the Internal Revenue Code of 1986 (or, if no return is filed, the address specified in the master files of the Internal Revenue Service).

      (3) INFORMATION TO ASSIST IN REBATES- Notwithstanding section 6103 of such Code, the Secretary of the Treasury shall, upon request, provide such information as the Secretary determines necessary to pay the rebates under subsection (d).

    (f) EFFECTIVE DATE- The section shall apply to fiscal years beginning after the date of the enactment of this Act.

SEC. 3. CONFORMING REDUCTION IN DISCRETIONARY SPENDING LIMITS.

    Upon enactment of this Act, the discretionary spending limits set forth in section 601(a)(2) of the Congressional Budget Act of 1974 (as adjusted in conformance with section 251 of the Balanced Budget and Emergency Deficit Control Act of 1958 and, in the Senate, with section 24 of House Concurrent Resolution 218 (103d Congress)) are reduced as necessary to reflect the amounts appropriated by this Act.