BILL ANALYSIS
SB 1076
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Date of Hearing: August 4, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 1076 (Price) - As Amended: August 2, 2010
Policy Committee: Revenue and
Taxation Vote: 8-1
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill adds the Arts Council Fund checkoff to the personal
income tax (PIT) form upon the removal of another voluntary
contribution fund (VCF) from the form. Specifically, the bill:
1)Allocates contributions received by the fund to the Arts
Council, which would in turn allocate grants to individuals or
organizations administering arts programs.
2)Sunsets in five years after becoming operative, or whenever
FTB estimates the annual contribution amount will be less than
$250,000, as adjusted for inflation.
FISCAL EFFECT
1)The contributions may be taken as an itemized deduction on
income tax returns. The Franchise Tax Board estimates that the
annual revenue losses from these deductions would be about
$15,000.
2)State administrative costs will be deducted from the
contribution proceeds.
COMMENTS
1)Purpose . The bill is intended to supplement funding for the
California Arts Council, which has seen a major reduction in
its GF budget over the past decade.
2)Background - voluntary contributions . Taxpayers can make
voluntary contributions to any of 15 funds listed on the state
SB 1076
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personal income tax return. The contributions are in addition
to any tax liabilities otherwise owed. Thus, they do not
directly reduce state taxes otherwise available to support
state-funded programs in the year in which they are made.
However, the amounts are allowed as an itemized deduction for
charitable contributions on the subsequent year's income tax
return. These voluntary contributions support various
purposes, including cancer research, endangered species
preservation, and emergency food assistance.
Contributions to the VCFs have historically ranged from
$250,000 to $800,000 per year. All but one VCF (the California
Seniors Special Fund) have sunset dates, and most must meet a
minimum annual contribution to remain on the return.
3)Background - California Arts Council . This counsel, which is
comprised of 11 members, is charged with encouraging artistic
awareness, promoting the employment of artists, and assisting
independent local groups in developing their own art programs.
It is responsible for awarding prizes and direct grants to
individuals and organizations. The counsel currently receives
revenues from the special license plate program, the national
endowment for the arts, and the GF. Contributions from the GF
fund have fallen sharply over the past decade, dropping from
$30 million in 2000-01 to $1 million in 2009-10.
4)Related legislation . This is one of several bills before the
Legislature adding voluntary contributions to the personal
income tax return. Other measures include SB 516 (DeSaulnier)
and AB 2017 (Hall) related to contributions for youth
programs, AB 1088 (Fletcher) relating to the California
Veterans Homes Fund, and AB 1983 (Torrico) relating to the
Safely Surrendered Baby Fund.
Analysis Prepared by : Brad Williams / APPR. / (916) 319-2081