Senator Patricia Bates (R-Laguna Niguel) announced today that she has introduced legislation in partnership with the California Franchise Tax Board (FTB) to eliminate filing fees for non-profit organizations applying for a state tax exemption.
“I’m pleased to work with the Franchise Tax Board to help non-profits save money, reduce paperwork, and make more efficient use of state resources,” said Senator Bates. “My legislation will enable the FTB to devote additional resources on more urgent matters, such as processing tax refunds for families.”
SB 934 eliminates the $25 filing fee paid to the FTB by non-profit organizations applying for a state tax exemption. It also removes 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 is currently pending a hearing date in the Senate Governance and Finance Committee.