California Senate Bill SB1073

California 2025-2026 Regular Session

• Introduced: 2/13/26
• Refer: 2/26/26
• Refer: 3/19/26
• Report Pass: 3/25/26
• Refer: 3/25/26
• Engrossed: 4/16/26
• Refer: 5/4/26

Caption

An act to add and repeal Article 3.5 (commencing with Section 18726) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, relating to taxation, and making an appropriation therefor.

Summary

SB 1073 would create a new voluntary income tax checkoff on California personal income tax returns for the Black Cultural District Voluntary Tax Contribution Fund. Taxpayers who owe more tax than they have paid could designate whole-dollar contributions, and the Franchise Tax Board would be required to add the fund to the tax return form. Contributions would be collected through the tax system, transferred to a newly created state treasury fund, and then used first to reimburse administrative costs and then to support the Black Cultural District designated in South Los Angeles. The bill directs the Arts Council to allocate the money for construction and maintenance of the Black Cultural District and related arts and cultural purposes, including supporting grassroots cultural opportunities, increasing visibility for local artists, and promoting socioeconomic and ethnic diversity. It also allows a deduction for contributions made under the article and requires the Arts Council to post certain grant and spending information on its website. The program would be temporary, with a sunset date of January 1, 2031, and an earlier repeal mechanism if projected annual contributions fall below $250,000 after the fund first appears on tax returns.

Impact

SB 1073 would add a new article to the Revenue and Taxation Code authorizing a voluntary tax contribution mechanism tied to the personal income tax return. It would require the Franchise Tax Board to revise tax forms, establish the Black Cultural District Voluntary Tax Contribution Fund in the State Treasury, and create a continuous appropriation structure for reimbursement of state administrative costs and distribution of funds to the Arts Council. The bill would affect taxpayers who choose to donate, the Franchise Tax Board, the Controller, and the Arts Council, while channeling state-administered contributions toward a specific cultural district project in South Los Angeles.

Sentiment

The bill appears to have been received positively in the Legislature. It advanced through committee with unanimous support and was placed on the consent calendar, indicating little visible opposition at the committee and floor stages reflected in the available record. The lack of recorded negative votes and the bill’s movement to Appropriations suggest broad agreement with the concept of a voluntary contribution fund for a culturally focused local project.

Contention

The main policy issues are not reflected in recorded opposition, but the bill’s structure raises the usual concerns associated with tax checkoff programs: whether the fund will generate enough contributions to justify administration, whether the Franchise Tax Board and Controller should bear the implementation burden, and whether a dedicated tax-return contribution is the best way to finance a local cultural district. The bill addresses the first concern by setting a $250,000 minimum annual contribution threshold and an automatic repeal mechanism if receipts are too low. Any substantive debate would likely center on the use of state tax forms for a geographically specific cultural project and on the appropriateness of a continuously appropriated fund for that purpose.