BILL ANALYSIS
REVISED
SENATE REVENUE & TAXATION COMMITTEE
Senator Gilbert Cedillo, Chair
AB 137 - Correa
Amended: March 5, 2003
Hearing: June 11, 2003 Fiscal: Yes
SUBJECT: Extends the California Fund for Senior Citizens
voluntary contribution/check-off designation on
the personal income tax return to January 1,
2010.
EXISTING LAW
Allows taxpayers to contribute money to one or more of 11
voluntary contribution funds by checking a box on their
state income tax return. California law requires
contributions made through check-offs to be made from
taxpayers' own resources (not from their tax liability, as
is possible on federal tax returns). Check-off amounts may
be claimed as charitable contributions on taxpayers' tax
returns during the subsequent year.
Allows the FTB to design tax returns to provide for the
designation of contributions to specified funds either on
the return itself or on a separate schedule that must be
attached to the return.
THIS BILL
Extends the check off for the California Fund for Senior
Citizens to January 1, 2010.
AB 137-Correa
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Requires that the check off meet the minimum contribution
requirement of $250,000.
FISCAL EFFECT:
FTB estimates that extending this check-off will result in
annual revenue losses of approximately $16,000 per year
beginning in the 2006-07 fiscal year.
COMMENTS:
A. Purpose of the bill
This bill is sponsored by the California Senior Legislature
and is intended to allow the California Fund for Senior
Citizens to remain on the income tax form indefinitely,
regardless of the amount of contributions it receives. This
bill is inconsistent with policies that have been adopted
in recent years by both policy and fiscal committees of the
Legislature with respect to requirements applied to income
tax checkoff bills
B. California Fund for Senior Citizens check-off
The California Fund for Senior Citizens check-off first
appeared on the income tax form in 1983. From 1983 through
1999, the check-off was not directly subject to minimum
contribution requirements; instead, the law specified that
minimum contribution requirements would be imposed if the
sunset date of the check-off were eliminated. In 1999, AB
1697 (Alquist), Chapter 228, Statutes of 1999, extended the
check-off's sunset date to January 1, 2004. However, in
response to concerns of FTB, both legislative tax policy
committees, and both legislative fiscal committees, that
California's 540-Series tax forms were in danger of
expanding to three pages because of a proliferation of
income tax check-offs, it was that a minimum contribution
requirement would be imposed at $250,000.
The indexed amount for this fund is expected to equal
approximately $262,000 in the 2002 tax year.
AB 137-Correa
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C. Too Many Good Causes
The committee expressed concern that there are many other
good causes such as birth defect research or library
assistance that were once on the tax return form and have
since sunset and been removed.
While the State is experiencing a fiscal crisis, it is
difficult to speculate whether a General Fund appropriation
would better serve the program; however, it is important to
ask if all groups will be seeking a check off as a way to
mitigate deep budget cuts.
D. Is the Tax Form Too Long?
The Franchise Tax Board noted a policy concern that the
placement of non-tax related voluntary contribution funds
on the tax return limits the amount of space available for
tax-related items. The inclusion of these check offs and
other non-tax related information might ultimately impair
tax collection and reduce administrative efficiency.
AB 137-Correa
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E. 2002 Income Tax Return Check-Offs
There are currently 11 check-offs on the income tax form;
there is room for a total of 12 check off items on the
return. The check-offs are as follows:
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| | | | | |
|VOLUNTARY CONTRIBUTION |Initial|Final |Sunset |Must Meet |
|FUNDS | Tax |Tax |Date |$250,000 |
| |Return |Return | |test - |
| | | | |Inflation |
| | | | |Year |
| | | | | |
|------------------------+-------+---------+----------+-------------|
| | | | | |
|CA Fund For Senior |1983 |2004 |01/01/2005|Yes - 2002 |
|Citizens | | | | |
| | | | | |
|------------------------+-------+---------+----------+-------------|
| | | | | |
|Fish and Game |1983 |2007 |01/01/2008|Yes -2003 |
|Preservation Fund | | | | |
| | | | | |
|------------------------+-------+---------+----------+-------------|
| | | | | |
|State Children's Trust |1983 |2007 |01/01/2008|Yes - 2003 |
|Fund | | | | |
| | | | | |
|------------------------+-------+---------+----------+-------------|
| | | | | |
|CA Alzheimer's Disease |1987 |2004 |01/01/2005|Yes - 1992 |
|and Related Research | | | | |
|Fund | | | | |
| | | | | |
|------------------------+-------+---------+----------+-------------|
| | | | | |
|CA Seniors Special Fund |1990 |No |None |No - None |
| | |Sunset | | |
| | | | | |
|------------------------+-------+---------+----------+-------------|
| | | | | |
|CA Breast Cancer |1992 |2007 |01/01/2008|Yes - 1997 |
AB 137-Correa
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|Research Fund | | | | |
| | | | | |
|------------------------+-------+---------+----------+-------------|
| | | | | |
|CA Firefighters' |1993 |2005 |01/01/2006|Yes* - None |
|Memorial Fund | | | | |
| | | | | |
|------------------------+-------+---------+----------+-------------|
| | | | | |
|Emergency Food |1998 |2003 |01/01/2004|Yes - 1999 |
|Assistance Program Fund | | | | |
| | | | | |
| | | | | |
|------------------------+-------+---------+----------+-------------|
| | | | | |
|California Peace |1999 |2005 |01/01/2006|Yes* - 2001 |
|Officer Foundation | | | | |
|Memorial Fund | | | | |
| | | | | |
|------------------------+-------+---------+----------+-------------|
| | | | | |
|Lupus Foundation of |2001 |2005 |01/01/2006|Yes - 2004 |
|America, CA Chapters | | | | |
|Fund | | | | |
| | | | | |
|------------------------+-------+---------+----------+-------------|
| | | | | |
|Asthma & Lung Disease & |2002** |2006 |01/01/2007|Yes -2005 |
|Research | | | | |
| | | | | |
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Support and Opposition
Support: California Senior Legislature (Sponsor)
Mayor, City of Huntington Beach
AARP of California
AARP--Lynwood, CA Chapter
Adult and Aging Network
AB 137-Correa
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Affiliated Committees on Aging of Los Angeles
County
Agency on Aging Advisory Council (San Luis Obispo
and Santa Barbara Counties)
Agency on Aging Advisory Council (Nevada, Placer,
Sacramento, Sierra, Sutter, Yolo, & Yuba
counties)
Agency on Aging Advisory Council (Los Angeles
County)
Alameda County Advisory Commission on Aging
California Dept. of Aging (Dept. of Health and
Human Services Agency)
California Legislative Council for Older
Americans
California Retired Teachers Association
California Seniors Coalition
Community and Senior Services of Los Angeles
County
Compton Alumnae Chapter, Delta Sigma Theta
Sorority
Congress of California Seniors
Council on Aging--City of Huntington Beach
Council on Aging (Lake and Mendocino Counties)
Fair Aging in Retirement
Gray Panthers California
Huntington Beach City Council
Imperial County Agency on Aging
Los Angeles County Area Agency on Aging
Los Angeles County and City Caucus
Midway City Chamber of Commerce and Homeowners
Association
Older Women's League of California
Orange County Senior Citizens Advisory Council
Pine Hill Construction (Santa Ana, CA)
Riverside County Advisory Council on Aging
San Joaquin County Commission on Aging
Senior Citizens Advisory Council
Shelter for the Homeless (Midway City, CA)
State Independent Living Council
51 individuals
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Consultant: Gayle Miller
06/10/:3 15:43