BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 1789 (Santiago) - Personal income taxes: voluntary
contributions: School Supplies for Homeless Children Fund
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|Version: June 27, 2016 |Policy Vote: GOV. & F. 6 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 1, 2016 |Consultant: Robert Ingenito |
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This bill does not meet the criteria for referral to the
Suspense File.
Bill
Summary: AB 1789 would extend the sunset date for the School
Supplies for Homeless Children Fund tax check-off on the
personal income tax return.
Fiscal
Impact:
The Franchise Tax Board (FTB) estimates that the bill
would result in annual revenue losses of $10,000 in
2017-18, and $15,000 thereafter (General Fund).
The State Controller's Office (SCO), the Department of
Social Services (DSS), and FTB and would be reimbursed for
related administrative costs.
AB 1789 (Santiago) Page 1 of
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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 (VCF). 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.
The School Supplies for Homeless Children Fund first appeared on
the 2012 return. It was originally authorized by SB 1571
(DeSaulnier) in 2012 to help provide school supplies to homeless
children. The indexed minimum contribution amount the Fund must
receive to remain on the 2016 return is $258,822, which was
easily cleared, as it received $398,900 in contributions during
taxable year 2015.
Proposed Law:
This bill would extend the sunset for the School Supplies for
Homeless Children Fund to January 1, 2022.
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. The tax check-off program typically collects $4-5
million in annual contributions for all VCFs.
AB 1789 (Santiago) Page 2 of
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