BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 1399 (Baker) - Income taxes: voluntary contributions:
California Domestic Violence Victims Fund
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|Version: June 9, 2016 |Policy Vote: GOV. & F. 7 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: June 27, 2016 |Consultant: Robert Ingenito |
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This bill does not meet the criteria for referral to the
Suspense File.
Bill
Summary: AB 1399 would authorize the addition of the California
Domestic Violence Victims Fund check-off to the personal income
tax return.
Fiscal
Impact:
The Franchise Tax Board (FTB) estimates that, beginning
in 2017- 18, this bill would result in an annual revenue
loss of $8,000 (General Fund) for every $250,000
contributed by itemizing taxpayers.
The Office of Emergency Services (OES) would incur minor
and absorbable costs to administer the program and provide
grants.
AB 1399 (Baker) Page 1 of
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The State Controller's Office (SCO) and FTB and would be
reimbursed for related administrative costs.
Background: Current law allows taxpayers to contribute money to one or more
of 19 voluntary contribution funds during the process of filing
their state income tax return (tax check-off). These
contributions are made from taxpayers' own resources, not from
their tax liability, as is the case with federal tax returns.
Check-off amounts are deductible as charitable contributions on
taxpayers' returns during the subsequent tax year. With some
exceptions, each voluntary contribution fund has a sunset date
and is required to meet a minimum contribution amount of
$250,000, adjusted annually for inflation.
Proposed Law:
This bill would add the California Domestic Violence Victims
Fund (Fund), and allow a taxpayer to make a voluntary
contribution to the Fund on the state personal income tax
return, beginning once an existing check-off for charitable fund
contribution has been removed, or as soon as space is available.
The bill would require the Fund to meet a minimum contribution
threshold of $250,000 in the second calendar year the Fund
appears on the tax form, and the amount is indexed yearly for
inflation.
Additionally, the bill would provide that all money transferred
to the Fund, upon appropriation by the Legislature, be allocated
as follows: (1) to FTB and SCO for reimbursement of all costs
incurred in administering the Fund, and (2) to OES for
distribution to domestic violence programs in California, as
specified.
The bill would prohibit funds to be used for administrative
costs by both grant recipients and OES. It would automatically
sunset on January 1 of the fifth taxable year following the
Fund's first appearance on the personal income tax form.
AB 1399 (Baker) Page 2 of
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Related
Legislation: SB 1476 (Committee on Governance and Finance) would
establish general provisions for voluntary contribution funds.
Specifically, the bill would (1) establish a seven-year sunset,
(2) require a minimum contribution amount of $250,000 beginning
in the fund's second year, and each year thereafter, requires
funds to be continuously appropriated, and (3) require
administering agencies to post information online about the use
of the funds. SB 1476 is currently awaiting action by the full
Assembly.
Staff
Comments: FTB data indicate that in 2012, 89,335 out of 15
million taxpayers contributed a total of $4.8 million via tax
check-offs.
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