BILL ANALYSIS
AB 243
Page 1
ASSEMBLY THIRD READING
AB 243 (Vargas)
As Introduced February 3, 2003
Majority vote
REVENUE AND TAXATION 7-0 APPROPRIATIONS 24-0
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|Ayes:|Chavez, Wyland, Harman, | | |
| |Laird, Leno, Simitian, | | |
| |Corbett | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Increases the value of the housing allowance that a
state-employed member of the clergy may exclude from taxation.
Specifically, this bill :
1)Allocates up to 50% of the gross salary of a member of the
clergy toward the rental value of a home furnished to him or
her or to a rental allowance for the purpose of providing the
clergymember a home.
2)Defines a member of the clergy as a priest, minister,
religious practitioner, or similar functionary of a religious
denomination or religions organization.
EXISTING FEDERAL LAW provides a gross income exclusion for the
fair rental value of a home furnished to a minister of the
gospel as part of his compensation or the rental allowance paid
to him as part of his compensation, to the extent used by him to
rent or provide a home.
EXISTING STATE LAW provides a rental allowance of up to 25% of
the gross salary of a minister of the gospel. This allowance is
not subject to state income taxation, provided that the amount
is designated as rental allowance prior to payment by the
minister's employer.
FISCAL EFFECT : The Franchise Tax Board estimates revenue losses
of approximately $150,000 annually.
COMMENTS : This bill applies only to members of the clergy who
are employed by the state. In practice, this includes chaplains
who serve at state prisons, youth authorities, mental health
AB 243
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facilities, centers for the developmentally disabled, and the
Legislature.
Chaplains have traditionally been provided a parsonage on church
grounds or, in the absence of a parsonage, an allowance for
housing. California's housing allowance for state chaplains was
last raised in 1967. Housing costs have increased substantially
since that time, and this bill's author and sponsor believe that
California's housing allowance should be increased to reflect
that fact.
This bill is sponsored by the American Federation of State,
County, and Municipal Employees (AFSCME), an organization that
represents state-employed chaplains. According to AFSCME,
California's state chaplains' housing cost deduction is
drastically below that allowed for other ordained clergy
throughout the United States with the same education and
credentials. State-employed chaplains who serve in areas of
California with relatively high housing costs are the most
severely penalized.
In addition to increasing the rental allowance allowed to
members of the clergy, this bill expands the definition of
"members of the clergy". According to this bill's sponsor, this
change is necessary because existing law fails to represent the
broad spectrum of people who are members of the clergy in
today's society. This bill's broad definition of "members of
the clergy" is intended to be all-inclusive.
Analysis Prepared by : Eileen Roush / REV. & TAX. / (916)
319-2098
FN: 0001370