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.
Senator Patricia Bates (R-Laguna Niguel) represents the 36th Senate District in the California Legislature, which covers South Orange County, North San Diego County, and Marine Corps Base Camp Pendleton. Click here to download her official Senate photo.