BILL ANALYSIS Ó
AB 247
Page 1
Date of Hearing: May 1, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 247 (Wagner) - As Amended: April 17, 2013
Policy Committee: Revenue and
Taxation Vote: 9-0
Urgency: No State Mandated Local
Program:NoReimbursable:
SUMMARY
This bill extends the repeal date of the income tax return
check-off date for the California Fund for Senior Citizens from
January 1, 2015, to December 1, 2020, provided donations from
taxpayers meet the required annual minimum.
FISCAL EFFECT
Minor annual GF revenue losses of roughly $10,000 from taxpayers
deducting charitable contributions, beginning in the 2016-17
fiscal year.
COMMENTS
1)Purpose . According to the author this bill will encourage
additional contributions toward the California Fund for Senior
Citizens, which provides support to the California Senior
Legislature, which advocates and proposes laws impacting
senior citizens. Proponents, including the California Senior
Legislature, argue AB 247 will ensure the California Senior
Legislature can continue to advocate on behalf of seniors in
California by extending the provision of the Personal Income
Tax Law allowing taxpayers to continue contributing to the
support of the California Fund for Senior Citizens.
2)Voluntary Contribution Funds. California taxpayers can make
voluntary contributions to any of 15 funds listed on the state
PIT return. The contributions are in addition to tax
liabilities so they do not directly reduce the amount of state
taxes in that tax year. As charitable contributions, the
taxpayer may deduct the amount of the check-off on the
AB 247
Page 2
subsequent year's income tax return, reducing state tax
collections. These voluntary contributions support various
purposes, including cancer research, endangered species
preservation and emergency food assistance. Most have sunset
dates and must meet a minimum annual contribution to remain on
the tax form.
3)Background. The California Fund for Senior Citizens supports
the ongoing work of the California Senior Legislature. The
California Senior Legislature notes since 1981 it has labored
to identify, develop and support legislative proposals that
protect and enhance the quality of life of California's
seniors.
The FTB reports that the fund first appeared on the 1983 PIT
return. The minimum amount of contributions amount for each
calendar year is $250,000, which is not annually adjusted for
inflation. In the 2012, the fund received approximately
$275,000 in contributions.
4)Related Legislation .
a) AB 394 (Yamada) extends the repeal date of the
California Alzheimer's Disease and Related Disorders
Research Fund from January 1, 2015, to December 1, 2020.
AB 394 is in the Senate.
b) AB 511 (Pan) establishes and allows taxpayers to make
voluntary contributions to the American Red Cross,
California Chapters Fund. AB 511 is on the Assembly floor.
c) AB 754 (Muratsuchi) establishes and allows taxpayers to
make voluntary contributions to the California Beach and
Coastal Enhancement Account. AB 754 is pending in this
committee.
d) AB 1286 (Skinner) suspends the annual adjustment of the
minimum contribution amount threshold for the California
Breast Cancer Research Fund. AB 1286 has been referred to
Assembly Revenue and Taxation Committee.
e) SB 116 (Liu) extends the repeal date of the Emergency
Food for Families Fund from January 1, 2014, to January 1,
2019. SB 116 has been referred to the Senate Committee on
Appropriations.
AB 247
Page 3
f) SB 571 (Price) establishes and allows taxpayers to make
voluntary contributions to the Arts for Kids Fund on their
state personal income tax returns. SB 571 has been
referred to the Senate Committee on Governance and Finance.
1)There is no registered opposition to this bill.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081