BILL ANALYSIS
AB 94
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Date of Hearing: April 29, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 94 (Evans) - As Amended: April 20, 2009
Policy Committee: Revenue and
Taxation Vote: 7-1
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill reauthorizes, through 2018-19, the awarding of tax
credits under the Natural Heritage Preservation Tax Credit Act
of 2000 (Act) and removes the $100 million cap that previously
applied to the program. The bill also:
1)Provides that tax credits may be awarded only if the amount of
all lost revenues is reimbursed by transfers to the General
Fund from other sources. These other sources include state
bond funds as described in the Public Resource Code, other
state funds available for the Act, court settlements, public
or private donations, local funds, or federal funds.
2)Expands the Act's definition of "donee" to include a local
government that has filed with a donor an application
submitted directly to the Wildlife Conservation Board.
FISCAL EFFECT
1)No direct impact on the GF, as the credits (estimated by the
Franchise Tax Board to be about $7 million per year) are fully
reimbursed by bond funds, federal or local funds, donations,
or other sources all of which could be used for other
purposes, absent this program
2)Potential reallocation of tens of millions of Proposition 84
bond funds, to the extent the funds currently authorized to be
used to reimburse the GF for the credits would be available
for other purposes absent the reauthorization of this program.
AB 94
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3)Minor indirect impact (initially in the range of $20,000 per
year and growing over time) on GF expenditures to backfill
schools for reduced property taxes, to the extent that the
credit results in a higher level of land donations and, hence,
a reduced property tax roll.
COMMENTS
1)Rationale . The author indicates that this bill is intended to
reestablish operation of the successful preservation tax
credit program, which has allowed state and local agencies to
save 45% of the cost of acquiring recreational and open-space
lands. Proponents state that the program has been used to
protect over 8,000 acres of natural lands throughout the
state.
2)Background . The Natural Heritage Preservation Tax Credit Act
of 2000 was established to encourage donations of land to the
state, local governments, and designated nonprofit
organizations. The donated property must be approved for
acceptance by the state Wildlife Conservation Board, which
notifies FTB of the amount of tax credit awarded for each
donation. The taxpayer is then allowed a state income tax
credit of up to 55% of the donated property's fair market
value. Any unused credit may be carried over for eight years.
The Wildlife Conservation Board had the authority to award up
to $100 million in tax credits beginning with fiscal year
2000-01. From July 1, 2002 through June 30, 2005, the awards
were permitted only in cases where the GF was fully reimbursed
from bond funds or other sources. The authority to award
credits expired after June 30, 2008. At that time, the credits
allocated under the program totaled $48.6 million. This bill
reestablishes the authority to issue credits, without the $100
million cap, but with requirements that GF revenue losses be
fully reimbursed.
3)Background-Proposition 84 . This measure, passed by the voters
in 2006, states that about $1.5 billion in bond funds not
otherwise designated for competitive grant programs may be
used to reimburse General Fund various conservation purposes.
A portion of these funds are permitted to be used to reimburse
the GF for the national heritage preservation tax credit.
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4)Prior legislation . This bill is similar to AB 2930 (Laird),
introduced in the 2007-08 Legislative Session. That measure,
which would have extended the program for five years, was held
on the Senate Appropriations Committee's suspense file.
Analysis Prepared by : Brad Williams / APPR. / (916) 319-2081