BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular
SB 17 (Monning) - California Sea Otter Fund
-----------------------------------------------------------------
| |
| |
| |
-----------------------------------------------------------------
|--------------------------------+--------------------------------|
| | |
|Version: December 1, 2014 |Policy Vote: GOV. & F. 7 - 0 |
| | |
|--------------------------------+--------------------------------|
| | |
|Urgency: No |Mandate: No |
| | |
|--------------------------------+--------------------------------|
| | |
|Hearing Date: April 20, 2015 |Consultant: Robert Ingenito |
| | |
-----------------------------------------------------------------
This bill does not meet the criteria for referral to the
Suspense File.
Bill Summary: AB 17 would extend the sunset date for the
California Sea Otter Fund (Fund) for taxable years 2016 through
2020.
Fiscal Impact: The Franchise Tax Board (FTB) estimates that this
bill would result in an annual revenue loss of $9,000 (General
Fund) beginning in 2016-17. Both FTB and the State Controller's
Office would be reimbursed for related administrative costs.
Background: Current law allows taxpayers to contribute money to
one or more of 18 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, which is permitted on 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.
SB 17 (Monning) Page 1 of
?
The California Sea Otter Fund support research to study and
protect the threatened population of sea otters in California,
which reportedly number less than 3,000. To date, the Fund has
supported the advancement of a long-term study to identify
impacts to sea otter health, including chemical and pathogen
pollution that is prominent off the developed areas of the
California coast. The Fund first appeared on the 2007 return,
and its 2014 minimum contribution amount was $277,666.
Contributions to the Fund have declined since 2011, but have
exceeded $300,000 between 2011 and 2013.
Proposed Law: This bill would extend the California Sea Otter
Fund check-off on the personal income tax form for an additional
five years, through 2020.
Related Legislation: SB 971 (Monning, Chapter 209, Statutes of
2011) extended the repeal date of the Fund's voluntary
contribution check-off from January 1, 2011, to January 1, 2016.
Staff Comments: FTB data indicate that roughly one-half of
taxpayers who contribute to the Fund itemize their deductions.
The average tax rate for these taxpayers is about six percent,
which produces the $9,000 annual revenue loss. In 2012, about
89,000 out of 15 million taxpayers (or less than one percent)
utilized one or more of the 18 check-offs; aggregate
contributions totaled $4.8 million.