Income taxes: voluntary contributions: Black Cultural District Voluntary Tax Contribution Fund

Beginning with 2026 tax returns, taxpayers may direct $1 or more beyond their tax liability to support construction and maintenance of the district. The fund operates through 2033 unless annual donations fall below $250,000.

What the law does ​

• Creates the continuously appropriated Black Cultural District Voluntary Tax Contribution Fund in the State Treasury.
• Adds a voluntary tax-return checkoff for individual taxpayers for tax years 2026 through 2032.
• Directs the Franchise Tax Board and Controller to collect, transfer, and recover their administrative costs from donated funds.
• Directs remaining funds to the Arts Council for the district’s construction and maintenance, with administrative spending capped at 5 percent.
• Requires the Arts Council to post its award process, administrative spending, and program-fund awards online.
• Allows taxpayers to deduct their contributions under state income-tax rules.
• Ends the checkoff early if estimated annual contributions fall below $250,000, while preserving transfer and disbursement of prior contributions.

Who it affects ​

• Individual California income-tax filers who choose to make an extra voluntary contribution.
• Joint filers, each of whom may separately designate a contribution.
• The Arts Council and recipients of funds for the Black Cultural District in south Los Angeles.

Context ​

Donations are allocated proportionally if a taxpayer’s available excess payment cannot cover all selected tax-return charitable checkoffs.