Amended in Senate April 22, 2013

Amended in Senate March 4, 2013

Senate Concurrent Resolution No. 12

Introduced by Senator Calderon

(Coauthor: Assembly Member John A. Pérez)

February 20, 2013

Senate Concurrent Resolution No. 12—Relative to taxation.

LEGISLATIVE COUNSEL’S DIGEST

SCR 12, as amended, Calderon. Taxation.

This measure would encourage state begin insert agencies, end insert departments begin insert , and commissions end insert to begin delete identify and utilize existing and potential end delete begin insert include in their public mission any appropriate efforts to encourage their employees to be a volunteer in the federal Volunteer Income Tax Assistance program and to work with end insert 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:  begin delete no end delete begin insert yes end insert .

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 assistance to seniors and low-income
working families earning less than begin delete $51,000 a year; end delete begin insert $50,270 a year,
depending upon filing status, family size, and income; end insert and

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

begin delete

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

end delete begin insert

WHEREAS, Each year, Californians volunteer their time to
participate in the federal Volunteer Income Tax Assistance (VITA)
program, and are trained by the public and private partnerships
with the Internal Revenue Service to prepare tax returns; and

end insert

WHEREAS, Each year, begin insert as a result of the VITA program, end insert the
EITC helps approximately begin delete 284,376 end delete begin insert 285,000 low-income end insert households
in California and brings more than $347 million into California’s
economy; and

begin delete

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

end delete

WHEREAS, Every resident earning less than begin delete $51,000 end delete begin insert $50,270 end insert
a year may qualify for up to $5,891 in EITC which can be used to
begin delete lower their taxes end delete begin insert reduce his or her tax obligation end insert or increase begin delete their end delete
begin insert his or her end insert tax refund; and

WHEREAS, Every 1,000 begin delete residents end delete begin insert taxpayers end insert 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; begin delete and end delete begin insert now, therefore, be it end insert

begin delete

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

end delete

Resolved by the Senate of the State of California, the Assembly
thereof concurring,That the Legislature of the State of California
encourages begin insert agencies, end insert departments begin insert , and commissions end insert of California
state government to begin delete identify and utilize existing and potential
public or private partnerships end delete begin insert include in their public service mission
any appropriate efforts to encourage their employees to volunteer
in the VITA program and to use their communications tools end insert to
inform citizens and employees about the availability begin insert and benefits end insert
of the begin delete EITC and the formation of VITA programs; end delete begin insert EITC; end insert and be
it begin delete further. end delete begin insert further end insert

Resolved, That the Legislature of the State of California
encourages each state entity to work in partnership with begin insert public or end insert
private outreach campaigns begin insert and the Internal Revenue Service end insert to
identify and utilize existing communications mechanisms to inform
Californians about the availability of the EITC and VITA programs,
which may include begin insert placing key information in end insert state publications,
Internet Web sites, human resource materials and communications,
begin insert appropriate end insert 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

begin delete

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

end delete

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