BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           292 (Yamada)
          
          Hearing Date:  06/29/2009           Amended: 06/22/2009
          Consultant: Mark McKenzie       Policy Vote: Rev&Tax 6-1
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          ____
          BILL SUMMARY:   AB 292 would extend the sunset date for the  
          California Alzheimer's Disease and Related Disorders Research  
          Fund voluntary contribution program on the income tax return  
          until January 1, 2015.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           Taxpayer donations (revenue)                  ($486)     
          ($486)Special*         

          Tax revenue loss                  $29         $29       General

          FTB admin              minor annual administrative costs,  
          General
                                 reimbursed from donations
          __________
          * California Alzheimer's Disease and Related Disorders Research  
          Fund
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: 
          
          Currently, there are 15 voluntary contribution (check-off)  
          programs on the personal income tax return which allow taxpayers  
          to donate their own funds for various purposes.  The California  
          Alzheimer's Disease and Related Disorders Research Fund  
          check-off, which provides funding for research related to the  
          cause, prevention, diagnosis, cure, and treatment of the  
          Alzheimer's disease and related disorders, first appeared on the  
          1987 tax return and is scheduled to sunset on January 1, 2010.   
          Generally, each tax check-off program has a sunset date and must  
          meet a minimum contribution level of $250,000 each year,  
          adjusted for inflation.  Donations to check-off programs are  
          deductable as charitable contributions on taxpayers' tax returns  










          during the subsequent year.

          AB 292 would extend the sunset for the California Alzheimer's  
          Disease and Related Disorders Research Fund check-off program  
          until January 1, 2015.

          The current minimum level of contribution for this check-off  
          program is $328,357 ($250,000 adjusted for inflation since  
          2000), and the average contribution amount over the past three  
          years has been $485,594.  Assuming this trend in average  
          donations continues, the estimated tax revenue loss would be  
          about $29,000 annually (applying the average marginal tax rate  
          of 6%), beginning in 2010-11, because contributions would be  
          claimed as an itemized deduction in the following tax year.   
          Costs for the Franchise Tax Board to administer the program are  
          minor and are reimbursed from donated amounts.