Governor Gavin Newsom has signed Senate Bill 934 by Senator Patricia Bates (R-Laguna Niguel) into law that will eliminate filing fees for non-profit organizations applying for a state tax exemption. Senator Bates authored SB 934 in partnership with the Franchise Tax Board (FTB).
“I thank the Governor for signing my bill to help non-profits save money, reduce paperwork, and make more efficient use of state resources,” said Senator Bates. “Special thanks goes to the FTB for partnering with me on this common sense legislation to help make our state government more efficient. When SB 934 becomes effective next year, the FTB will be able to devote additional resources on priorities such as processing tax refunds for families.”
SB 934 will eliminate the $25 filing fee paid to the FTB by non-profit organizations applying for a state tax exemption. It will 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.
SB 934 takes effect on January 1, 2021.