BILL ANALYSIS �
AB 1286
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Date of Hearing: April 15, 2013
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Raul Bocanegra, Chair
AB 1286 (Skinner) - As Introduced: February 22, 2013
Majority vote.
SUBJECT : Personal income tax: contributions: California Breast
Cancer Research Fund.
SUMMARY : Specifies that for calendar years 2014 to 2017, the
California Breast Cancer Research Fund's (Fund's) minimum
contribution amount shall equal the minimum contribution amount
for the 2013 calendar year.
EXISTING LAW :
1)Allows taxpayers to contribute their own funds (and not tax
liability) to any of the 18 voluntary contribution funds
(VCFs) listed on the 2012 state personal income tax return.
One such VCF is this Fund.
2)Provides that this Fund shall remain on the state personal
income tax return until it sunsets or until the Franchise Tax
Board (FTB) projects the Fund will fail to meet its minimum
annual contribution amount. The Fund's current sunset date is
January 1, 2018, and the minimum contribution amount for the
2013 calendar year is $371,724. The minimum contribution
amount adjusts annually for inflation, based on the percentage
change in the California Consumer Price Index.
COMMITTEE RULES require that VCF bills comply with this
Committee's VCF (Income Tax Checkoff) Policy (VCF Policy). This
Committee's VCF Policy, in turn, requires all existing checkoffs
to meet an inflation-adjusted $250,000 minimum contribution
threshold.
FISCAL EFFECT : The FTB estimates that this bill would not
significantly impact the agency's costs or impact the state's
income tax revenues.
COMMENTS :
AB 1286
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1)The author has provided the following statement in support of
this bill:
In light of the improved economic forecast, freezing the
minimum contribution will allow the [California Breast
Cancer Research Program] to regain its momentum in
contributions while simultaneous[ly] alleviating concerns
about reaching the minimum contribution amount. This
critical program should not be jeopardized by a temporary
economic downturn.
2)Proponents state:
While the annual minimum contribution amount set by the
Franchise Tax Board has increased steadily during the past
decade, tax-deductible contributions towards breast cancer
research has declined significantly. In 2002, the amount
contributed was $724,965; meanwhile, in 2012 that figure
dropped to $440,711. The decrease in contributions places
CBCRP at risk of not obtaining the minimum contribution and
losing critical funding for innovative research.
3)Committee Staff Comments:
a) A Questionable Precedent : As noted above, this
Committee's VCF Policy requires that all existing checkoffs
meet an inflation-adjusted $250,000 minimum contribution
requirement. This bill would freeze inflation adjustments
for 2014 to 2017 for the Fund, in violation of this
Committee's Rules. The Committee's VCF policy was
originally adopted in response to the proliferation of VCF
legislation, and in recognition of the fact that space on
the return is limited. Were this Committee to make an
exception for the Fund, it would open the door to the
supporters of every other checkoff advocating for a
suspension of inflation adjustments or for lower minimum
contribution thresholds. To give the Fund special
dispensation would also be unfair to the many other VCFs
whose public support has diminished in recent years.
AB 1286
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b) So Many Causes, So Little Space : There are countless
worthy causes that would benefit from the inclusion of a
VCF on the state's income tax returns. At the same time,
space on the returns is limited. The Fund's purpose is
inarguably laudable. So too, however, are the purposes
advanced by the 17 other VCFs on the return. If
California's taxpayers decide, for whatever reason, not to
support a particular fund, it opens space on the return for
other VCFs and other worthy causes.
REGISTERED SUPPORT / OPPOSITION :
Support
American Association of University Women
American Cancer Society Cancer Action Network
American Congress of Obstericians and Gynecologists
Breast Cancer Fund
University of California
Opposition
None on file
Analysis Prepared by : Edward Beeby & M. David Ruff / REV. &
TAX. / (916) 319-2098