SACRAMENTO – The California State Assembly today approved Senate Bill 934 by Senator Patricia Bates (R-Laguna Niguel) on a 75 to 0 vote that would eliminate filing fees for non-profit organizations applying for a state tax exemption. It will go to Governor Newsom for his consideration. Senator Bates authored SB 934 in partnership with the Franchise Tax Board (FTB).
“I appreciate the Assembly’s bipartisan support of SB 934 that would help non-profits save money, reduce paperwork, and make more efficient use of state resources,” said Senator Bates. “Assemblyman Steven Choi deserves special thanks for presenting the bill on my behalf to his Assembly colleagues and for helping to get their support. The Governor should sign SB 934 into law so the FTB can devote additional resources on priorities such as processing tax refunds for families.”
SB 934 would eliminate the $25 filing fee paid to the FTB by non-profit organizations applying for a state tax exemption. It would also remove the $10 filing fee for annual informational returns paid to the FTB by specified tax-exempt organizations as well as a $25 late fee. According to the FTB, it costs more for it to collect these fees from the nonprofits than the amount of money they bring in to the state. The FTB believes the bill will help improve operational efficiency and enable the agency to focus on more pressing priorities.