SENIOR ASSEMBLY PROPOSAL NO. 35

INTRODUCED BY ASSEMBLY MEMBER ERMAN

(COAUTHOR: SENATOR BOUCHER)

LEGISLATIVE COUNSEL'S DIGEST

AP35: 540EZ TAX FORM FOR SENIORS AND OTHER PERSONS.

UNDER EXISTING LAW, ANY PERSON 65 OR OVER OR WITH A TAXABLE INCOME GREATER THAN $50,000, INCLUDING MARRIED COUPLES FILING A JOINT RETURN, MAY NOT USE CALIFORNIA 540EZ PERSONAL INCOME TAX FORM.

THIS MEASURE WOULD MEMORIALIZE THE LEGISLATURE AND THE GOVERNOR TO ENACT LEGISLATION THAT WOULD ALLOW SENIORS 65 AND OVER AND OTHER PERSONS WITH INCOME FROM INTEREST, DIVIDENDS, PENSIONS, AND CAPITAL GAINS TO UTILIZE THE 540EZ PERSONAL INCOME TAX FORM.  IT WOULD ALSO INCREASE THE TAXABLE INCOME LIMIT FOR USING THE 540EZ TAX FORM TO $100,000 FOR MARRIED COUPLES AND WOULD LIMIT THE TAX RATE FOR PERSONS USING THE 540EZ TAX FORM TO 2.5 PERCENT.

VOTE: MAJORITY.

AP 35: RELATING TO USE OF THE 540EZ TAX FORM BY SENIORS AND OTHER PERSONS

WHEREAS, SENIOR CITIZENS AND OTHER PERSONS WASTE A TREMENDOUS AMOUNT OF TIME AND EFFORT MAINTAINING FINANCIAL RECORDS IN ORDER TO PROTECT THEMSELVES IN CASE OF A FUTURE TAX AUDIT; AND

WHEREAS, SENIORS 65 AND OVER AND OTHER PERSONS WITH INCOME FROM SOURCES OTHER THAN WAGES AND INTEREST OF $400 OR LESS ARE PROHIBITED FROM USING THE FRANCHISE TAX BOARD 540E2 TAX FORM; NOW, THEREFORE, BE IT

RESOLVED, BY THE SENIOR ASSEMBLY AND THE SENIOR SENATE, JOINTLY, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA AT ITS 2000 REGULAR SESSION, A MAJORITY OF THE MEMBERS VOTING THEREFOR, HEREBY PROPOSES THAT SENIORS 65 AND OVER AND OTHER PERSONS WITH INCOME FROM INTEREST, DIVIDENDS, PENSIONS, AND CAPITAL GAINS BE ALLOWED TO USE THE CALIFORNIA 540EZ TAX FORM; AND BE IT FURTHER

RESOLVED, THAT THE CURRENT INCOME LIMIT OF $50,000 FOR USING THE 540EZ TAX FORM BE RAISED TO $100,000 FOR MARRIED COUPLES AND THAT THE TAX RATE FOR PERSONS USING THE 540EZ TAX FORM BE LIMITED TO 2.5 PERCENT IN ORDER TO PROVIDE A COMPARABLE TAX LEVEL OFFERED THOSE CLAIMING ITEMIZED DEDUCTIONS ON CALIFORNIA TAX FORMS 540 AND 540A; AND BE IT FURTHER

RESOLVED, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA RESPECTFULLY MEMORIALIZES THE LEGISLATURE AMD THE GOVERNOR TO ENACT APPROPRIATE LEGISLATION THAT WOULD ADDRESS THE CONCERNS SET FORTH IN THIS MEASURE; AND BE IT FURTHER

RESOLVED, THAT A COPY OF THIS MEASURE BE TRANSMITTED TO THE SPEAKER OF THE ASSEMBLY, THE PRESIDENT PRO TEMPORE OF THE SENATE, AND THE GOVERNOR OF THE STATE OF CALIFORNIA.

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