BILL ANALYSIS
SENATE REVENUE & TAXATION COMMITTEE
Senator Lois Wolk, Chair
SB 91 - Correa
Amended: As Introduced
Hearing: April 22, 2009 Fiscal: Yes
SUBJECT: Extends the California Fund for Senior Citizens
voluntary contribution/check-off designation on
the personal income tax return to January 1,
2015.
EXISTING LAW allows taxpayers to contribute money to
one or more of 15 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 would extend the check off for the
California Fund for Senior Citizens to January 1, 2015.
THIS BILL would require that the check off meet the
minimum contribution requirement of $250,000.
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FISCAL EFFECT:
According to FTB extending this check-off will result in
annual revenue losses of approximately $15,000 per year
beginning in the 2009-10 fiscal years.
COMMENTS
A. Purpose of the bill
To extend the contribution provisions for the
California Fund for Senior Citizens under the Personal
Income Tax Law from 2010 until 2015.
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B. Background
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 through 2015.
The minimum contribution amount for each year is $250,000.
In the past four calendar years, the fund has received the
following total annual contributions:
----------------------------------------------------------
FTB states that the minimum contribution amount does not
adjust for inflation. The California Fund for Senior
Citizens has consistently exceeded its $250,000
requirement.
With the following exceptions, VCFs remain on the return
until they are either repealed or fail to meet their
minimum contribution amount:
Except for the California Seniors Special Fund,
which has no sunset date, each VCF has a specific
sunset date.
Except for the California Seniors Special Fund, the
California Firefighters Memorial Fund, and the
California Peace Officer Memorial Foundation Fund,
each VCF must meet an initial minimum contribution
amount of $250,000.
Except for the California Fund for Senior Citizens,
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each of the remaining VCF minimum contribution amounts
is adjusted annually for inflation which is based on
the percentage change in the California Consumer Price
Index.
B. Many worthy causes
In the past, the Committee has expressed concern
that countless worthy causes may be funded by tax
check-offs. The Committee has stated that the current
check-off system forces them to choose between worthy
charities and non-profits for a spot on the tax return.
The current system remains subjective and is limited to
those organizations that can convince the Legislature to
include them on the form. Additionally, taxpayers may
currently contribute portions of their refunds to worthy
organizations. Taxpayers may also claim a deduction for
charitable contributions. The Committee may wish to
consider whether the state should use the tax code to
encourage contributions to certain charitable
organizations.
In addition to this bill, the following bills have
been introduced this year:
AB 292 (Yamada, 2009/2010) would extend the expiration
date of the Alzheimer's Disease and Related Disorders
Research Fund from January 1, 2010, to January 1, 2015.
This bill is currently set for hearing in the Assembly
Revenue and Taxation Committee.
AB 1049 (Torrico, 2009/2010) would create a VCF
designation on the personal income tax return for taxpayers
to contribute to the Safely Surrender Babies Fund. This
bill has been referred to the Assembly Revenue and Taxation
Committee.
AB 1088 (Fletcher, 2009/2010) would create a VCF
designation on the personal income tax return in order for
taxpayers to contribute to the Morale, Welfare, and
Recreation Fund for each of the veterans' homes, as
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provided. This bill is currently set for hearing in the
Assembly Veterans Affairs Committee.
SB 91 (Correa, 2009/2010) would extend the expiration
date of the California Fund for Senior Citizens from
January 1, 2010, to January 1, 2015. This bill is currently
set for hearing in the Senate Revenue and Taxation
Committee.
C. 2008 Check-Offs
Contributions to voluntary funds in 2008 were as
follows:
--------------------------------------------
| Voluntary Contribution | 2008 |
|Fund |Contribution|
| | s |
|-------------------------------+------------|
|Alzheimer's Disease/Related | $505,510 |
|Disorders Fund | |
|-------------------------------+------------|
|California Breast Cancer | $596,729 |
|Research Fund | |
|-------------------------------+------------|
|California Firefighters' | $250,060 |
|Memorial Fund | |
|-------------------------------+------------|
|California Fund for Senior | $288,695 |
|Citizens | |
|-------------------------------+------------|
|California Military Family | $306,750 |
|Relief Fund | |
|-------------------------------+------------|
|California Peace Officer | $184,261 |
|Memorial Foundation Fund | |
|-------------------------------+------------|
|California Sea Otter Fund | $294,966 |
|-------------------------------+------------|
|Emergency Food for Families | $438,582 |
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|Fund | |
|-------------------------------+------------|
|Rare and Endangered Species | $580,823 |
|Preservation Fund | |
|-------------------------------+------------|
|State Children's Trust for the |$528,609 |
|Prevention of Child Abuse | |
| | |
| | |
--------------------------------------------
-------------------------------
| Newly Added as of January |
|2009 |
|-------------------------------|
|ALS/Lou Gehrig's Disease |
|Research Fund |
|-------------------------------|
|California Cancer Center |
|Research Fund |
|-------------------------------|
|California Ovarian Cancer |
|Research Fund |
|-------------------------------|
|California Seniors Special |
|Fund |
|-------------------------------|
|Municipal Shelter Spay and |
|Neuter Fund |
| |
| |
-------------------------------
Support and Opposition
Support: California Senior Legislature
Richard Lamb, Member, Advisory Council,
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Area 12 Agency on Aging
Susan Thompson, Senior Senator
Opposition:None reported.
---------------------------------
Consultant: Marisa Lanchester
April 15, 2009