BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           91 (Correa)
          
          Hearing Date:  5/4/2009         Amended: A I 1/20/2009
          Consultant: Mark McKenzie       Policy Vote: Rev&Tax 7-1
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   SB 91 would extend the sunset date for the  
          California Fund for Senior Citizens check-off program on the  
          income tax return until January 1, 2015.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           
          Taxpayer donations (revenue)                  ($277)     
          ($277)Special*         

          Tax revenue loss                  $17         $17       General

          FTB admin              minor annual administrative costs,  
          General
                                 reimbursed from donations
          __________
          * California Fund for Senior Citizens
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: 
          
          Currently, there are 15 "check-off" programs on the personal  
          income tax return which allow taxpayers to donate their own  
          funds for various purposes.  One of these, the California Fund  
          for Senior Citizens, supports the California Senior Legislature.  
           This check-off is scheduled to sunset on January 1, 2010.   
          However, if donations drop below $250,000 in any year, it would  
          be removed from the tax return in the following year even if the  
          provisions had not expired.  Donations to check-off programs are  
          deductable as charitable contributions on taxpayers' tax returns  
          during the subsequent year.

          SB 91 would extend the sunset for the California Fund for Senior  
          Citizens check-off program until January 1, 2015.











          Taxpayers must contribute at least $250,000 annually to the  
          California Fund for Senior Citizens in order for the tax  
          checkoff to remain on income tax forms.  The average  
          contribution amount over the last four years has been $276,972  
          annually.  Assuming this trend continues, the estimated tax  
          revenue loss would be about $17,000 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.