Senate Concurrent Resolution No. 12

Introduced by Senator Calderon

February 20, 2013

Senate Concurrent Resolution No. 12—Relative to taxation.

LEGISLATIVE COUNSEL’S DIGEST

SCR 12, as introduced, Calderon. Taxation.

This measure would encourage state departments to identify and utilize existing and potential public or private partnerships to inform citizens and employees about the availability of the federal Earned Income Tax Credit and Volunteer Income Tax Assistance programs, as specified.

Fiscal committee: no.

WHEREAS, Insufficient income contributes to many of the
social and human service needs in our state; and

WHEREAS, The federal Earned Income Tax Credit (EITC)
provides tax relief and income support to seniors and low-income
working families earning less than $51,000 a year; and

WHEREAS, The EITC lifts millions of individuals out of
poverty each year in the United States by supporting work and
self-sufficiency while reducing the need for public assistance; and

WHEREAS, Increasing EITC utilization represents a highly
cost-effective economic development strategy; and

WHEREAS, Each year, the EITC helps approximately 284,376
households in California and brings more than $347 million into
California’s economy; and

WHEREAS, It is estimated that every year, out of every family
that qualifies for the EITC, 800,000 Californians fail to file for
EITC, accordingly, increasing Californian’s utilization of the EITC
would help to bring additional funds into California’s economy;
and

WHEREAS, Every resident earning less than $51,000 a year
may qualify for up to $5,891 in EITC which can be used to lower
their taxes or increase their tax refund; and

WHEREAS, Every 1,000 residents who qualify and apply for
EITC represents a potential $5.8 million economic stimulant for
our communities; and

WHEREAS, An increase of $1.2 billion each year in EITC
benefits would generate $1.2 billion in business sales, pay $311
million in wages, and add nearly 7,500 jobs to the state economy
each year; and

WHEREAS, A volunteer EITC State Commission made up of
executive directors of the State Board of Equalization, the
Franchise Tax Board, the Employment Development Department,
and representatives from the offices of the Superintendent of Public
Instruction, the Controller, the Treasurer, the Trustees of the
California State University System, the Board of Governors of the
California Community Colleges, and two union representatives
would coordinate Volunteer Income Tax Assistance (VITA)
activities and provide callers with tax credit information, including
information on eligibility rules, and direct workers to nearby VITA
sites for needed tax forms and assistance; now, therefore, be it

Resolved by the Senate of the State of California, the Assembly
thereof concurring,That the Legislature of the State of California
encourages departments of California state government to identify
and utilize existing and potential public or private partnerships to
inform citizens and employees about the availability of the EITC
and the formation of VITA programs; and be it further.

Resolved, That the Legislature of the State of California
encourages each state entity to work in partnership with private
outreach campaigns to identify and utilize existing communications
mechanisms to inform Californians about the availability of the
EITC and VITA programs, which may include state publications,
Internet Web sites, human resource materials and communications,
correspondence and forms from the state taxing agencies, the
Treasurer, and the Controller, targeted printed materials,
caseworker and client interactions, and application materials for
state assistance and state licenses; and be it further

Resolved, That the Legislature of the State of California
encourages each state entity including the State Librarian, the
Superintendent of Public Instruction, and others to utilize existing
state infrastructure, if appropriate, to support EITC outreach and
statewide availability of the VITA program, which may include
utilizing the Department of Workforce Investment Service Centers
and other appropriate locations as VITA sites, staffed by trained
VITA volunteers, between January and April, encouraging local
school districts to integrate EITC outreach and VITA services into
their parent involvement and community school efforts, and
utilizing economic development tools and negotiations to
encourage and support EITC outreach and employment-based
VITA sites if appropriate; and be it further

Resolved, That the Secretary of the Senate transmit copies of
this resolution to the author for appropriate distribution.