BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 137|
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THIRD READING
Bill No: AB 137
Author: Correa (D)
Amended: 3/5/03 in Assembly
Vote: 21
SENATE REVENUE & TAXATION COMMITTEE : 4-0, 6/11/03
AYES: Cedillo, Poochigian, Burton, Knight
ABSENT/NO VOTE RECORDED: Alpert, Ashburn, Bowen
SENATE APPROPRIATIONS COMMITTEE : 7-2, 7/14/03
AYES: Battin, Aanestad, Burton, Karnette, Murray,
Poochigian, Speier
NOES: Ashburn, Johnson
ABSENT/NO VOTE RECORDED: Alpert, Bowen, Escutia, Machado
ASSEMBLY FLOOR : 78-0, 4/21/03 - See last page for vote
SUBJECT : Income taxes: designated contributions: senior
citizens
SOURCE : California Senior Legislature
DIGEST : This bill extends the sunset date on the
California Fund for Senior Citizens tax checkoff to January
1, 2010, provided the fund receives at least a specified,
minimum level of contributions annually.
ANALYSIS : 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
CONTINUED
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checkoffs to be made from taxpayers' own resources (not
from their tax liability, as is possible on federal tax
returns). Checkoff amounts may be claimed as charitable
contributions on taxpayers' tax returns during the
subsequent year.
This bill is sponsored by the California Senior Legislature
(CSL) and is intended to allow the fund to remain on the
income tax form beyond the 2004 tax year. This income tax
checkoff fund provides the sole source of funding for CSL,
and this bill's author would like to provide that
organization with the assurance that their funding will
continue beyond 2004.
The fund checkoff first appeared on the income tax form in
1983. From 1983 through 1999, the checkoff 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
checkoff were eliminated.
AB 1697 (Alquist), Chapter 228, Statutes of 1999, extended
the checkoff's sunset date to January 1, 2004. However, in
response to concerns of the Franchise Tax Board, 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 checkoffs, Assemblymember
Alquist agreed to impose minimum contribution requirements
on the fund checkoff. Under the provisions of AB 1697,
this checkoff was required to receive at least $250,000 in
contributions on the 2001 tax form and an equivalent amount
($250,000 indexed for inflation) in subsequent years. The
indexed amount is expected to equal approximately $262,000
in the 2002-tax year.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
The Franchise Tax Board estimates that extending this
checkoff will result in annual revenue losses of
approximately $16,000 per year beginning in fiscal year
2006-07.
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SUPPORT : (Verified 7/15/03)
California Senior Legislature (source)
AARP, Lynwood
Agency on Aging, Imperial County
American Federation of State, County, and Municipal
Employees, AFL-CIO California Retired Teachers Association
California Seniors Coalition
Congress of California Seniors
Fair Aging In Retirement
Gray Panthers California
Los Angeles County Area Agency on Aging Advisory Council
Midway City Chamber of Commerce and Homeowners Association
Pine Hill Construction
Senior Citizens Advisory Council, Orange County
Shelter For The Homeless
Santa Clara County Board of Supervisors
Alameda County Board of Supervisors
ASSEMBLY FLOOR :
AYES: Aghazarian, Bates, Benoit, Berg, Bermudez, Bogh,
Calderon, Campbell, Canciamilla, Chan, Chavez, Chu,
Cogdill, Cohn, Corbett, Correa, Cox, Daucher, Diaz,
Dutra, Dutton, Dymally, Firebaugh, Frommer, Garcia,
Goldberg, Hancock, Harman, Haynes, Jerome Horton, Shirley
Horton, Houston, Jackson, Keene, Kehoe, Koretz, La Malfa,
La Suer, Laird, Leno, Leslie, Levine, Lieber, Liu,
Longville, Lowenthal, Maddox, Maldonado, Matthews, Maze,
McCarthy, Montanez, Mountjoy, Mullin, Nakanishi, Nakano,
Nation, Negrete McLeod, Nunez, Oropeza, Pacheco, Parra,
Pavley, Plescia, Reyes, Richman, Runner, Salinas,
Samuelian, Simitian, Spitzer, Steinberg, Strickland,
Vargas, Wiggins, Wolk, Wyland, Wesson
DLW:sl 7/15/03 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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