Existing law allows an individual taxpayer to contribute amounts in excess of their personal income tax liability for the support of specified funds and accounts, including, among others, to the Native California Wildlife Rehabilitation Voluntary Tax Contribution Fund.

This bill would allow, for taxable years beginning on or after January 1, 2026, and before January 1, 2033, an individual to designate on their tax return that a specified amount in excess of their tax liability be transferred to the continuously appropriated Black Cultural District Voluntary Tax Contribution Fund (fund), which would be created by this bill. The bill would allocate moneys in the fund to, among other entities, the Arts Council for allocation for the construction and maintenance of the Black Cultural District designated in south City of Los Angeles. The bill would require the Franchise Tax Board to revise the tax return form to include a space for the designation of contributions to the fund. By establishing a new continuously appropriated fund, the bill would make an appropriation.

This bill would provide that these provisions would remain in effect only until January 1, 2034, but would further provide for an earlier repeal if the Franchise Tax Board determines that the amount of contributions estimated to be received by September 1, 2028, and later calendar years will not at least equal the minimum contribution amount, in which case these provisions would be repealed on January 1 of the following year.

Existing law allows an individual taxpayer to contribute amounts in excess of their personal income tax liability for the support of specified funds and accounts, including, among others, to the Native California Wildlife Rehabilitation Voluntary Tax Contribution Fund.

This bill would allow, for taxable years beginning on or after January 1, 2026, and before January 1, 2033, an individual to designate on their tax return that a specified amount in excess of their tax liability be transferred to the continuously appropriated Black Cultural District Voluntary Tax Contribution Fund (fund), which would be created by this bill. The bill would allocate moneys in the fund to, among other entities, the Arts Council for allocation for the construction and maintenance of the Black Cultural District designated in south City of Los Angeles. The bill would require the Franchise Tax Board to revise the tax return form to include a space for the designation of contributions to the fund. By establishing a new continuously appropriated fund, the bill would make an appropriation.

This bill would provide that these provisions would remain in effect only until January 1, 2034, but would further provide for an earlier repeal if the Franchise Tax Board determines that the amount of contributions estimated to be received by September 1, 2028, and later calendar years will not at least equal the minimum contribution amount, in which case these provisions would be repealed on January 1 of the following year.

Existing law allows an individual taxpayer to contribute amounts in excess of their personal income tax liability for the support of specified funds and accounts, including, among others, to the Native California Wildlife Rehabilitation Voluntary Tax Contribution Fund.

This bill would allow, for taxable years beginning on or after January 1, 2026, and before January 1, 2033, an individual to designate on their tax return that a specified amount in excess of their tax liability be transferred to the continuously appropriated Black Cultural District Voluntary Tax Contribution Fund (fund), which would be created by this bill. The bill would allocate moneys in the fund to, among other entities, the Arts Council for allocation for the construction and maintenance of the Black Cultural District designated in south City of Los Angeles. The bill would require the Franchise Tax Board to revise the tax return form to include a space for the designation of contributions to the fund. By establishing a new continuously appropriated fund, the bill would make an appropriation.

This bill would provide that these provisions would remain in effect only until January 1, 2034, but would further provide for an earlier repeal if the Franchise Tax Board determines that the amount of contributions estimated to be received by September 1, 2028 2028, and later calendar years will not at least equal the minimum contribution amount, in which case these provisions would be repealed on January 1 of the following year.

Existing law allows an individual taxpayer to contribute amounts in excess of their personal income tax liability for the support of specified funds and accounts, including, among others, to the Native California Wildlife Rehabilitation Voluntary Tax Contribution Fund.

This bill would allow allow, for taxable years beginning on or after January 1, 2026, and before January 1, 2033, an individual to designate on their tax return that a specified amount in excess of their tax liability be transferred to the continuously appropriated Black Cultural District Voluntary Tax Contribution Fund (fund), which would be created by this bill. The bill would allocate moneys in the fund to, among other entities, the Arts Council for allocation for the construction and maintenance of the Black Cultural District designated in south City of Los Angeles. The bill would require the Franchise Tax Board to revise the tax return form to include a space for the designation of contributions to the fund. By establishing a new continuously appropriated fund, the bill would make an appropriation.

This bill would provide that these provisions would remain operative only until January 1 of the 7th calendar year following the first appearance of the fund on the tax return, in effect only until January 1, 2034, but would further provide for an earlier repeal if the Franchise Tax Board determines that the amount of contributions estimated to be received during the 2nd and by September 1, 2028 and later calendar years after its first appearance on a return will not at least equal the minimum contribution amount, in which case these provisions would be repealed on December 1 of that January 1 of the following year.

Existing law allows an individual taxpayer to contribute amounts in excess of their personal income tax liability for the support of specified funds and accounts, including, among others, to the Native California Wildlife Rehabilitation Voluntary Tax Contribution Fund.

This bill would allow an individual to designate on their tax return that a specified amount in excess of their tax liability be transferred to the continuously appropriated Black Cultural District Voluntary Tax Contribution Fund, Fund (fund), which would be created by this bill, the funds of which would be available upon appropriation. bill. The bill would allocate moneys in the fund to, among other entities, the Arts Council for allocation for the construction and maintenance of the Black Cultural District designated in south City of Los Angeles. The bill would require the Franchise Tax Board to revise the tax return form to include a space for the designation of contributions to the fund. The bill would make these provisions operative only until January 1, 2031, as specified. By establishing a new continuously appropriated fund, the bill would make an appropriation.

Existing law allows an individual taxpayer to contribute amounts in excess of their personal income tax liability for the support of specified funds and accounts, including, among others, to the Native California Wildlife Rehabilitation Voluntary Tax Contribution Fund.

This bill would allow an individual to designate on their tax return that a specified amount in excess of their tax liability be transferred to the Black Cultural District Voluntary Tax Contribution Fund, which would be created by this bill, the funds of which would be available upon appropriation. The bill would require the Franchise Tax Board to revise the tax return form to include a space for the designation of contributions to the fund. The bill would make these provisions operative only until January 1, 2031, as specified.

 UNFINISHED BUSINESS  

Bill No: SB 1073

Author: Smallwood-Cuevas (D), et al.

Amended: 6/11/26

Vote: 21

SENATE REVENUE AND TAXATION COMMITTEE: 5-0, 3/25/26

AYES: McNerney, Alvarado-Gil, Ashby, Becker, Grayson

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SENATE FLOOR: 38-0, 4/16/26 (Consent)

AYES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Grove, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Niello, Ochoa Bogh, Padilla, Pérez, Reyes, Richardson, Rubio, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener

NO VOTE RECORDED: Menjivar, Seyarto

ASSEMBLY FLOOR: 78-0, 8/20/26 - See last page for vote

SUBJECT: Income taxes: voluntary contributions: Black Cultural District Voluntary Tax Contribution Fund

SOURCE: California Arts Advocates

DIGEST:

This bill establishes the Black Cultural District Voluntary Tax Contribution Fund and authorizes a taxpayer to make a voluntary contribution to the fund on their state personal income tax return for taxable years 2026 through 2032.

Assembly Amendments (1) clarify that taxpayers are authorized to make voluntary donations to the fund on an original return during taxable years 2026-2032; (2) limit the amount that the California Arts Council (CAC) can use for administrative purposes to 5% of the fund’s moneys; (3) rephrase the repeal date to explicitly refer to January 1, 2034; and (4) make other technical and conforming changes.

ANALYSIS:

Existing law:

1. Allows taxpayers to contribute money from their own resources in excess of the amount they owe in taxes to Voluntary Contribution Funds (VCF) by checking a box on their state Personal Income Tax (PIT) return.
2. Establishes 18 VCFs on the PIT Return.
3. Generally requires the Franchise Tax Board (FTB) to remove a VCF due to a sunset provision or if the VCF fails to meet the statutory minimum contribution amount.
4. Generally requires FTB to annually determine whether estimated contributions to each VCF will exceed $250,000 to remain on the PIT form.
5. Provides that after a taxpayer contributes to a VCF, the FTB deposits all contributions, minus its administration costs, into a fund named for the VCF.
6. Requires that VCFs meet certain best practices:
7. Include “voluntary tax contribution” in the fund name;
8. Requires the administering agency’s internet website to report specific data related to the usage of the amounts received from a VCF;
9. Be repealed following January 1 of the seventh calendar year following the first appearance of the contribution on the tax return and be repealed as of December 1 of that year.
10. Establishes the CAC as the state’s only public arts grants provider for the support of local arts infrastructure (SB 1024, Zenovich, Chapter 1192, Statutes of 1975).
11. Tasks the CAC with establishing criteria and guidelines for state-designated cultural districts, which are geographical areas certified by the CAC with a concentration of cultural facilities, creative enterprises, or arts venues (AB 189, Bloom, Chapter 396, Statutes of 2015).
12. Designates 24 cultural districts, including the Historic South Los Angeles Black Cultural District.

This bill:

1. Establishes the Black Cultural District Voluntary Tax Contribution Fund.
2. Authorizes a taxpayer to make a voluntary contribution to the fund on their originally filed state PIT return for tax years 2026 to 2032, if the fund meets the minimum contribution amount of $250,000 annually.
3. Provides that if the amount of contributions for that calendar year is not at least equal to the minimum contribution amount, the VCF shall become inoperative on January 1 of that calendar year and be repealed on December 1 of that year.
4. Directs that contributions to this fund be allocated to the CAC to construct and maintain the Black Cultural District designated in the South City of Los Angeles for the following purposes:
5. Celebrate the diversity of California while unifying under an umbrella of shared values;
6. Help to grow and sustain authentic grassroots arts and cultural opportunities;
7. Increase the visibility of local artists;
8. Increase community participation in local arts and culture; and
9. Promote socioeconomic and ethnic diversity.
10. Directs the CAC to post on its website information regarding the usage of the allocated funds.
11. Limits to 5% of the fund’s money the amount CAC can use for administrative purposes.
12. Repeals its provisions as of January 1, 2034.

Background

Historic South Los Angeles Black Cultural District. In 2017, the CAC designated 14 original cultural districts, and in 2026, it designated 10 new districts, including the Historic South Los Angeles Black Cultural District. The formal recognition of the Historic South Los Angeles Black Cultural District is a vital step toward recognizing South L.A.’s deep and enduring cultural contributions, addressing historic inequities, and ensuring Black cultural treasures are protected and celebrated. South L.A. has a historically high rate of Black residency and is home to the highest concentration of Black cultural assets in California, including museums, local businesses, restaurants, and entertainment venues.

Related legislation

SB 881 (McNerney, 2026), which, among other provisions, extends the January 1, 2026, repeal date for the Emergency Food for Families Voluntary Tax Contribution Fund to January 1, 2037.

SB 575 (Laird, 2026), which reestablishes the California Sea Otter Voluntary Tax Contribution Fund and authorizes a taxpayer to make a voluntary contribution to the fund on their state personal income tax return for tax years 2026 through 2033.

AB 611 (Lee, 2025) establishes the California Spinal Cord Injury Research Voluntary Tax Contribution Fund and authorizes a taxpayer to make a voluntary contribution to the fund on their state personal income tax return from tax year 2027 to 2033.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

According to the Assembly Appropriations Committee:

• Beginning fiscal year 2027-28, annual General Fund (GF) revenue loss of approximately $6,000. FTB generally assumes $6,000 in GF revenue loss for every $250,000 in Fund contributions.
• Minor and absorbable costs to the FTB and the State Controller’s Office to administer another VCF program, likely offset by Fund contributions.
• Costs of approximately $189,000 ongoing to the CAC for one staff position to provide oversight of Fund money allocated for specified purposes and report related data on the CAC’s website (GF). The CAC notes it cannot absorb the workload necessary to implement this bill with existing staff, even though CAC may use up to 5% of Fund contributions received for administrative purposes.

SUPPORT: (Verified 8/20/26)

California Arts Advocates (Sponsor)

Councilmember Curren D. Price, Jr., 9th District, City of Los Angeles
Black Women Organized for Political Action 
California Preservation Foundation
Greater Los Angeles African American Chamber of Commerce
Greater Sacramento Urban League
LA Commons
Partnership for Growth LA
Rising Communities (formerly Community Health Councils)
UC Berkeley’s Underground Scholars Initiative

OPPOSITION: (Verified 8/20/26)

None received

ARGUMENTS IN SUPPORT: According to the author, “SB 1073 establishes the Black Cultural District Voluntary Contribution Fund, providing California taxpayers with a voluntary opportunity to invest directly in the preservation and long-term sustainability of the Historic South Los Angeles Black Cultural District. Since this is one of the first Black Cultural Districts to be designated in California, it plays a vital role in safeguarding California’s cultural heritage, supporting small businesses, and addressing the long-term impacts of displacement against the Black community. However, like many cultural districts, it faces chronic funding challenges that threaten its ability to thrive and remain accessible to the communities it serves. SB 1073 offers a meaningful solution by allowing Californians to make voluntary contributions through their personal income tax returns, in partnership with the California Arts Council, to directly support the Black Cultural District. The bill does not raise taxes or impose new mandates. Instead, it empowers individuals who wish to support Black history and culture with a clear, voluntary way to do so. By enabling public participation, SB 1073 helps ensure that the Historic South Los Angeles Black Cultural District can endure and be preserved for future generations.”

ASSEMBLY FLOOR: 78-0, 8/20/26

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Flora, Fong, Gabriel, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

NO VOTE RECORDED: Chen

Prepared by: Haley Summers / REV. & TAX. / (916) 651-4117

8/20/26 13:50:46

**** END ****

SENATE THIRD READING

STR Bill Id:SB 1073

Author:(Smallwood-Cuevas)

As Amended Ver:June 11, 2026

Majority vote

SUMMARY

Requires the Franchise Tax Board (FTB) to add the Black Cultural District Voluntary Tax Contribution Fund (Fund) as a voluntary contribution fund (VCF) on the personal income tax (PIT) return.

Major Provisions

1. Establishes the Fund in the State Treasury.
2. Provides that all moneys transferred to the Fund shall be continuously appropriated and allocated to the:
   1. FTB and the State Controller for reimbursement of all administrative costs incurred; and,
   2. Arts Council for allocation for the construction and maintenance of the Black Cultural District designated in south City of Los Angeles to support the following purposes:
      1. Celebrate the diversity of California while unifying under an umbrella of shared values, and help to grow and sustain authentic grassroots arts and cultural opportunities;
      2. Increase the visibility of local artists and community participation in local arts and culture; and,
      3. Promote socioeconomic and ethnic diversity.
3. Requires the Arts Council to report on its internet website information regarding the process for awarding money, the amount of money spent on administration, and an itemization of how program funds were awarded.
4. Provides that the VCF shall be operative for taxable years beginning on or after January 1, 2026, and before January 1, 2033.
5. Requires the Fund to meet a standard minimum contribution amount of $250,000 to remain in effect.

COMMENTS

1. So many causes, so little space: There are countless worthy causes that would benefit from the inclusion of a VCF on the state's income tax returns. At the same time, space on the returns is limited. Thus, it could be argued that the current system for adding VCFs to the form is subjective and essentially rewards organizations and causes that can convince the Legislature to include their fund on the form.
2. What would this bill do? For taxable years beginning on or after January 1, 2026, and before January 1, 2033, this bill would require the addition of the Fund as a VCF on the PIT return. After reimbursement of the FTB and State Controller for their administrative costs, all moneys in the Fund would be continuously appropriated to the Arts Council for allocation for the construction and maintenance of the Black Cultural District designated in south City of Los Angeles. Specifically, the money would be allocated to:
   • 1. Celebrate the diversity of California while unifying under an umbrella of shared values, and help to grow and sustain authentic grassroots arts and cultural opportunities;
     2. Increase the visibility of local artists and community participation in local arts and culture; and,
     3. Promote socioeconomic and ethnic diversity.

According to the Author

The author has provided the following statement in support of this bill:

SB 1073 establishes the Black Cultural District Voluntary Contribution Fund, providing California taxpayers with a voluntary opportunity to invest directly in the preservation and long-term sustainability of the Historic South Los Angeles Black Cultural District.

Since this is one of the first Black Cultural Districts to be designated in California, it plays a vital role in safeguarding California's cultural heritage, supporting small businesses, and addressing the long-term impacts of displacement against the Black community. However, like many cultural districts, it faces chronic funding challenges that threaten its ability to thrive and remain accessible to the communities it serves.

SB 1073 offers a meaningful solution by allowing Californians to make voluntary contributions through their personal income tax returns, in partnership with the California Arts Council, to directly support the Black Cultural District. The bill does not raise taxes or impose new mandates. Instead, it empowers individuals who wish to support Black history and culture with a clear, voluntary way to do so.

By enabling public participation, SB 1073 helps ensure that the Historic South Los Angeles Black Cultural District can endure and be preserved for future generations.

Arguments in Support

Supporters of this bill note the following:

SB 1073 builds on the state's designation of Historic South LA and earlier investments by establishing a long-term, voluntary funding source for preservation, cultural programming, and other community-serving activities. Sustained support is especially important where historic and cultural resources face ongoing pressures from disinvestment, displacement, and redevelopment, and where preservation can reinforce neighborhood identity, strengthen local economies, and help communities retain the places that define their history and character.

Arguments in Opposition

None on file

FISCAL COMMENTS

According to the Assembly Committee on Appropriations:

1. Beginning fiscal year 2027-28, annual General Fund (GF) revenue loss of approximately $6,000. FTB generally assumes $6,000 in GF revenue loss for every $250,000 in Fund contributions.
2. Minor and absorbable costs to the FTB and the State Controller to administer another VCF program, likely offset by Fund contributions.
3. Costs of approximately $189,000 ongoing to the Arts Council for one staff position to provide oversight of Fund money allocated for specified purposes and report related data on the Arts Council's website (GF). The Arts Council notes it cannot absorb the workload necessary to implement this bill with existing staff, even though the Arts Council may use up to 5% of Fund contributions received for administrative purposes.

VOTES

SENATE FLOOR: 38-0-2

YES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Grove, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Niello, Ochoa Bogh, Padilla, Pérez, Reyes, Richardson, Rubio, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener

ABS, ABST OR NV: Menjivar, Seyarto

ASM REVENUE AND TAXATION: 7-0-0

YES: Gipson, Sanchez, Carrillo, DeMaio, McKinnor, Quirk-Silva, Michelle Rodriguez

ASM ARTS, ENTERTAINMENT, SPORTS, AND TOURISM: 9-0-0

YES: Ward, Lackey, Elhawary, Jeff Gonzalez, McKinnor, Ortega, Quirk-Silva, Valencia, Zbur

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Hoover, Arambula, Calderon, Caloza, Dixon, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache, Ta, Tangipa

UPDATED

VERSION: June 11, 2026

CONSULTANT: M. David Ruff / REV. & TAX. / (916) 319-2098 FN: 0003549

Date of Hearing: August 5, 2026

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

SBPCA Bill Id:SB 1073

Author:(Smallwood-Cuevas) – As Amended Ver:June 11, 2026

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill establishes the Black Cultural District Voluntary Tax Contribution Fund (Fund) on the Personal Income Tax (PIT) return.

Specifically, this bill:

1. Requires the Franchise Tax Board (FTB) to revise the PIT return form to designate a space for the Fund and allows, for taxable years beginning January 1, 2026, and before January 1, 2033, a taxpayer to donate a portion of their PIT refund to the Fund.
2. Establishes the Fund in the State Treasury, requires the FTB to notify the State Controller (SCO) of the amount of refund money designated by taxpayers for the Fund, and requires the SCO to transfer this designated amount from the PIT Fund to the Fund.
3. Provides a continuous appropriation from the Fund to the FTB and the SCO for reimbursement of related administrative costs, with remaining revenues allocated to the Arts Council (CAC) for allocation for the construction and maintenance of the Black Cultural District designated in south City of Los Angeles to support certain purposes, such as to celebrate the diversity of California and grow and sustain arts and cultural opportunities.
4. Prohibits the CAC from using more than 5% of the allocation for administrative purposes.
5. Requires the CAC to report on its website certain Fund expenditure details.
6. Requires the FTB to annually estimate whether the Fund will receive the minimum contribution amount ($250,000) to remain on the PIT return in the next taxable year.

FISCAL EFFECT:

1. Beginning fiscal year 2027-28, annual General Fund (GF) revenue loss of approximately $6,000. FTB generally assumes $6,000 in GF revenue loss for every $250,000 in Fund contributions.
2. Minor and absorbable costs to the FTB and the SCO to administer another voluntary contribution fund (VCF) program, likely offset by Fund contributions.
3. Costs of approximately $189,000 ongoing to the CAC for one staff position to provide oversight of Fund money allocated for specified purposes and report related data on the CAC’s website (GF). The CAC notes it cannot absorb the workload necessary to implement this bill with existing staff, even though CAC may use up to 5% of Fund contributions received for administrative purposes.

COMMENTS:

1. Purpose. According to the author:

SB 1073 establishes the [Fund], providing California taxpayers with a voluntary opportunity to invest directly in the preservation and long-term sustainability of the Historical South Los Angeles Black Cultural Distrct.

Since this is one of the first Black Cultural Districts to be designated in California, it plays a vital role in safeguarding California’s cultural heritage, supporting small businesses, and addressing the long-term impacts of displacement against the Black community. However, like many cultural districts, it faces chronic funding challenges that threaten its ability to thrive and remain accessible to the communities it serves.

This bill is sponsored by California Arts Advocates and also supported by the California Preservation Foundation and community groups.

1. Background. Cultural Districts. Cultural districts are well-recognized, labeled areas of a city in which a high concentration of cultural facilities and programs serve as the main anchor of attraction and creative business development. AB 189 (Bloom), Chapter 396, Statutes of 2015, required the CAC to establish criteria and guidelines for State-Designated Cultural Districts (SDCDs). In 2017, the CAC announced the inaugural designation of 14 SDCDs, a list that has since grown to 24 SDCDs, including designation of the Historic South Los Angeles Black Cultural District in December 2025.

VCFs. Existing law allows a taxpayer to donate an amount in excess of their PIT liability to one or more VCFs listed on the PIT return. There were 18 VCFs listed on the 2025 return. Generally, a VCF remains on the PIT return until a statutory sunset date, but if the FTB determines the VCF fails to meet a $250,000 minimum contribution amount, the VCF is statutorily repealed and the FTB removes the VCF from the return. This bill creates a new VCF to support further construction and maintenance of the Historic South Los Angeles Black Cultural District.

1. Related Legislation. SB 575 (Laird) establishes the California Sea Otter Voluntary Tax Contribution Fund on the PIT return. SB 575 is pending on the Assembly Floor.

SB 881 (McNerney) extends the sunset dates for the Emergency Food for Families VCF and the Donated Fresh Fruits and Vegetables tax credit. SB 881 is pending hearing by this committee.

AB 611 (Lee) was recently amended to strike the bill’s previous contents and instead add the California Spinal Cord Injury Research VCF on the PIT return. AB 611 is pending hearing by the Senate Appropriations Committee.

AB 703 (Lee), Chapter 63, Statutes of 2025, added the California Pediatric Cancer Research VCF to the PIT return.

AB 829 (Sharp-Collins), Chapter 99, Statutes of 2025, added the Parkinson’s Disease Research VCF on the PIT return.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: June 23, 2026

ASSEMBLY COMMITTEE ON ARTS, ENTERTAINMENT, SPORTS, AND TOURISM

Christopher M. Ward, Chair

SBPCA Bill Id:SB 1073

Author:(Smallwood-Cuevas) – As Amended Ver:June 11, 2026

SENATE VOTE: 38-0

SUBJECT: Income taxes: voluntary contributions: Black Cultural District Voluntary Tax Contribution Fund

SUMMARY: SB 1073 requires the Franchise Tax Board (FTB) to add the Black Cultural District Voluntary Tax Contribution Fund (Fund) as a voluntary contribution fund (VCF) on the personal income tax (PIT) return.

Specifically, this bill:

1. Establishes the Fund in the State Treasury.
2. Provides that all moneys transferred to the Fund shall be continuously appropriated and allocated to the:
   1. FTB and the State Controller for reimbursement of all administrative costs incurred; and,
   2. Arts Council for allocation for the construction and maintenance of the Black Cultural District designated in south City of Los Angeles to support the following purposes:
      1. Celebrate the diversity of California while unifying under an umbrella of shared values, and help to grow and sustain authentic grassroots arts and cultural opportunities;
      2. Increase the visibility of local artists and community participation in local arts and culture; and,
      3. Promote socioeconomic and ethnic diversity.
3. Requires the California Arts Council (CAC) to report on its internet website information provided by its grantee, if any, regarding the process for awarding money, the amount of money spent on administration, and an itemization of how program funds were awarded.
4. Provides that the VCF shall be operative for taxable years beginning on or after January 1, 2026, and before January 1, 2033.
5. Requires the Fund to meet a standard minimum contribution amount of $250,000 to remain in effect.

EXISTING LAW:

1. Creates the CAC, consisting of 11-members who serve four-year, staggered terms. Nine members are appointed by the Governor, subject to Senate confirmation, and the Speaker of the Assembly and the Senate Committee on Rules appoint one member each. (Government Code (GOV) Section 8751)
2. Directs CAC to encourage artistic awareness, participation, and expression; to help independent local groups develop their own arts programs; to promote employment of artists and those skilled in crafts in the public and private sector; to provide for exhibition of artistic works in public buildings; and, to enlist the aid of all state agencies in the task of ensuring the fullest expression of artistic potential. (GOV 8753)
3. Authorizes CAC to accept federal grants and unrestricted gifts, donations, bequests, or grants of funds from private sources and public agencies (GOV 8753)
4. Defines a “state-designated cultural district” as a certified geographical area with a concentration of cultural facilities, creative enterprises, or arts venues that do any of the following:
   1. Attract artists, creative entrepreneurs, and cultural enterprises.
   2. Encourages economic development and supports entrepreneurship in the creative community.
   3. Encourages the preservation and reuse of historic buildings and other artistic and culturally significant structures.
   4. Fosters local cultural development.
   5. Provides a focal point for celebrating and strengthening the unique cultural identity of the community.
   6. Promotes opportunity without generating displacement or expanding inequality. (GOV 8758)
5. Directs CAC to establish criteria and guidelines for state-designated cultural districts. In executing its powers and duties under this chapter, the council shall do all of the following:
   1. Establish a competitive application system by which a community may apply for certification as a state-designated cultural district.
   2. Provide technical assistance for state-designated cultural districts from, among others, artists who have experience with cultural districts and provide promotional support for state-designated cultural districts.
   3. Collaborate with other public agencies and private entities to maximize the benefits of state-designated cultural districts. (GOV 8758)
6. A geographical area within the state may be certified as a state-designated cultural district by applying to the council for certification. Certification as a state-designated cultural district shall be for a period of five years, after which the district may renew certification every three years. (GOV 8758)
7. Allows taxpayers to contribute to one or more of 18 VCFs on the 2025 PIT return. (Revenue and Taxation Code (RTC) Section 18700 et seq.)
8. Requires each VCF to meet an annual minimum contribution amount to remain in effect, except for the California Firefighters' Memorial Voluntary Tax Contribution Fund, the California Peace Officer Memorial Foundation Voluntary Tax Contribution Fund, the California Senior Citizen Advocacy Voluntary Tax Contribution Fund, and the California Seniors Special Fund. (RTC Sections 18801 et seq., 18805 et seq., 18730 et seq., and 18771 et seq.)
   
9. Provides a specific sunset date for each VCF, except for the California Seniors Special Fund and the State Parks Protection Fund. (RTC Sections 18771 et seq. and 18900.1 et seq.)
10. Requires the statutory provisions establishing a VCF to remain in effect only until January 1 of the seventh calendar year following the VCF's first appearance on the PIT return. (RTC Section 18873.)

FISCAL EFFECT: The FTB estimates that this bill would reduce General Fund revenues by $6,000 in both fiscal year (FY) 2027-28 and FY 2028-29.

COMMENTS:

1. Author’s statement. According to the author, “SB 1073 establishes the Black Cultural District Voluntary Contribution Fund, providing California taxpayers with a voluntary opportunity to invest directly in the preservation and long-term sustainability of the Historic South Los Angeles Black Cultural District.

“Since this is one of the first Black Cultural Districts to be designated in California, it plays a vital role in safeguarding California's cultural heritage, supporting small businesses, and addressing the long-term impacts of displacement against the Black community. However, like many cultural districts, it faces chronic funding challenges that threaten its ability to thrive and remain accessible to the communities it serves.

“SB 1073 offers a meaningful solution by allowing Californians to make voluntary contributions through their personal income tax returns, in partnership with the California Arts Council, to directly support the Black Cultural District. The bill does not raise taxes or impose new mandates. Instead, it empowers individuals who wish to support Black history and culture with a clear, voluntary way to do so.

“By enabling public participation, SB 1073 helps ensure that the Historic South Los Angeles Black Cultural District can endure and be preserved for future generations.”

1. Background. In 2015, the Legislature required the CAC to establish criteria and guidelines for State-Designated Cultural Districts with AB 189 (Bloom, Chapter 396, Statutes of 2015). At the time, supporters stated that cultural districts are well-recognized, labeled areas of a city in which a high concentration of cultural facilities and programs serve as the main anchor of attraction and creative business development. Supporters argued that a cultural district designation helps strengthen local economies, create an enhanced sense of place, and deepen local cultural capacity.

In 2017, the CAC announced the 14 districts that served as California’s inaugural State-Designated Cultural Districts, highlighting thriving cultural diversity and unique artistic identities within local communities across California.

The California Cultural Districts Program aims to leverage the state’s artistic and cultural assets. Aligning with the mission and values of the CAC, the districts celebrate the diversity of California while unifying under an umbrella of shared values-helping to grow and sustain authentic grassroots arts and cultural opportunities, increasing the visibility of local artists and community participation in local arts and culture, and promoting socioeconomic and ethnic diversity. Districts range developmentally from emerging to established; include an emphasis on cultural consumption, cultural production, and cultural heritage; and are located in urban, suburban and rural areas.

The program helps communities harness their unique cultural assets to stimulate local economies, attract tourism, preserve historic sites, and support vibrant, inclusive creative economies. Districts are selected through a rigorous, equity-centered application process that emphasizes authentic community partnerships, vision clarity, and demonstrated cultural depth.

Selection for the California Cultural Districts was conducted through a multistep process, including an open application phase, a peer panel review, site visits for semi-finalists, and finalist selection. The program is highly competitive and received interest and submissions from dozens of communities across the state.

California’s 24 State-Designated Cultural Districts

1. California Arts Council. In 1975, the Legislature created the CAC, which is celebrating its 50th anniversary as a state agency this year (SB 1024, Zenovich, 1975). CAC is the state’s only public arts grants provider and supports local arts infrastructure and programming across the state through grants, programs, and services. Their flagship programs are Arts in California Parks, Arts in Corrections, California Creative Corps, Creative Economy of California, Cultural Districts, Poetry Out Loud, Poet Laureate, CA Teen Poet Laureate, and Individual Artists Fellowships.

Of note, the CAC was one of many state programs affected by California's 2024 budget deficit. The May Revision of the 2024-25 Budget proposed reducing California Arts Council grant funding by $10 million ongoing, which would have cut the agency's grantmaking budget by roughly 38 percent. Through negotiations, the cuts were reduced to $5 million in 2024-25 and $5 million in 2025-26. The Art Council was allocated $34.5 million of state funds for the fiscal year 2025-26, and the Governor’s budget for 2026–27 proposes $36.1 million.

1. Arguments in support. According to the California Arts Advocates (CAA) in support, “For generations, South LA has been a center of Black life, creativity, and leadership and has shaped nationally significant movements in music, arts, civil rights, and labor. South Los Angeles is home to multiple historic landmarks, including the Los Angeles Memorial Coliseum, home to the 1932 and 1984 Summer Olympic Games. South Los Angeles has also been a hub for various art movements and artists, including the Chicano art movement and the Black arts movement, deeply rooted in activism and cultural identity. Despite the profound cultural and historical significance, the Historic South Los Angeles Black Cultural District lacks a stable and dedicated source of funding to support long-term preservation.

“A targeted, voluntary funding solution is needed to ensure the Historic South Los Angeles Black Cultural District can thrive, remain community-centered, and fulfill the promise of the historic designation. AB 1073 ensures that Californians can voluntarily donate to support the Historic South Los Angeles Black Cultural District and affirms the importance of protecting living cultural heritage, supporting community-led development, and ensuring the Black cultural spaces are preserved, celebrated, and sustained for future generations.

“Cultural districts are crucial catalysts for both economic vitality and community enrichment. They are designed to boost local pride, reinforce neighborhood identity, and foster greater social cohesion. The CAA is a strong supporter of the Cultural District Program, which was created by AB 189 (2015-16), and measures like SB 1073 that promote the long-term, sustainable development of these districts statewide. We see SB 1073 as a potential model for other districts and, critically, we also advocate for sustained state funding for the entire cultural district program.”

1. Double-referral. This measure was first referred to the Assembly Committee on Revenue and Taxation, where it passed on a 7-0 vote.
2. Amendments and policy considerations. The Cultural Districts program is very popular within the California Legislature. The 24 current state-designated cultural districts are represented by 36 different members of the Senate and Assembly, with a few members having multiple within their elected districts. The original 14 cultural districts were announced in July 2017, with the designation intended to last for five years, but due in part to the pandemic, the original cohort received extended designations and additional state support through a one-time investment of $30 million.

The 10 newest state-designated cultural districts, including the Historic South Los Angeles Black Cultural District, were announced in December 2025. These districts will receive $10,000 over two years, state certification, technical assistance, and marketing support. The Historic South Los Angeles Black Cultural District is unique in that before receiving the official designation from CAC, the Legislature approved $2.5 million in the Budget Act of 2025 as seed funding for the creation and implementation of the district.

A possible consideration in the future, if other cultural districts consider creating VCFs, would be to provide CAC with more flexibility in the administration and distribution of these types of funds. That way CAC could use a portion of the moneys received to provide some additional support to other state-designated cultural districts if one receives a direct appropriation.

1. Prior and related legislation:
   1. AB 812 (Boerner), Chapter 747, Statutes of 2023, authorized local governments to set aside 10% of any locally-required affordable housing units for artists within one-half mile of a state designated cultural district or within a locally designated cultural district.
   2. AB 1258 (Rendon), of 2023, would have required the CAC to employ strategies to achieve goals related to equity, community impact, artistic practice, and arts programs. This bill died in the Senate Governmental Organization Committee.
   3. AB 1382 (Quirk-Silva), of 2023, would have required the CAC to designate a permanent ongoing staff person to develop, support, and strategically plan the competitive State-Designated Cultural District certification and technical assistance program, and to establish an interdepartmental advisory group. This bill died in the Senate Committee on Appropriations.
   4. AB 189 (Bloom), Chapter 396, Statutes of 2015, required CAC to establish criteria and guidelines for state-designated cultural districts, as defined, and established a competitive application system by which a community may apply for certification as a state-designated cultural district.

REGISTERED SUPPORT / OPPOSITION:

Support

California Arts Advocates

Councilmember Curren D. Price, Jr., 9th District, City of Los Angeles
Greater Los Angeles African American Chamber of Commerce
Greater Sacramento Urban League
LA Commons
Partnership for Growth LA
Rising Communities (formerly Community Health Councils)
UC Berkeley's Underground Scholars Initiative (USI)

Opposition

None on file.

Analysis Prepared by: Brian V. Anderson, Jr. / A.,E.,S., & T. / (916) 319-3450

Date of Hearing: June 8, 2026

ASSEMBLY COMMITTEE ON REVENUE AND TAXATION

Mike Gipson, Chair

SBPCA Bill Id:SB 1073

Author:(Smallwood-Cuevas) – As Amended Ver:May 28, 2026

Majority vote. Fiscal committee.

SENATE VOTE: 38-0

SUBJECT: Income taxes: voluntary contributions: Black Cultural District Voluntary Tax Contribution Fund

SUMMARY: Requires the Franchise Tax Board (FTB) to add the Black Cultural District Voluntary Tax Contribution Fund (Fund) as a voluntary contribution fund (VCF) on the personal income tax (PIT) return. Specifically, this bill:

1. Establishes the Fund in the State Treasury.
2. Provides that all moneys transferred to the Fund shall be continuously appropriated and allocated to the:
   1. FTB and the State Controller for reimbursement of all administrative costs incurred; and,
   2. Arts Council for allocation for the construction and maintenance of the Black Cultural District designated in south City of Los Angeles to support the following purposes:
      1. Celebrate the diversity of California while unifying under an umbrella of shared values, and help to grow and sustain authentic grassroots arts and cultural opportunities;
      2. Increase the visibility of local artists and community participation in local arts and culture; and,
      3. Promote socioeconomic and ethnic diversity.
3. Requires the Arts Council to report on its internet website information provided by its grantee, if any, regarding the process for awarding money, the amount of money spent on administration, and an itemization of how program funds were awarded.
4. Provides that the VCF shall be operative for taxable years beginning on or after January 1, 2026, and before January 1, 2033.
5. Requires the Fund to meet a standard minimum contribution amount of $250,000 to remain in effect.

EXISTING LAW:

1. Allows taxpayers to contribute to one or more of 18 VCFs on the 2025 PIT return. (Revenue and Taxation Code (R&TC) Section 18700 et seq.)
2. Requires each VCF to meet an annual minimum contribution amount to remain in effect, except for the California Firefighters' Memorial Voluntary Tax Contribution Fund, the California Peace Officer Memorial Foundation Voluntary Tax Contribution Fund, the California Senior Citizen Advocacy Voluntary Tax Contribution Fund, and the California Seniors Special Fund. (R&TC Sections 18801 et seq., 18805 et seq., 18730 et seq., and 18771 et seq.)
   
3. Provides a specific sunset date for each VCF, except for the California Seniors Special Fund and the State Parks Protection Fund. (R&TC Sections 18771 et seq. and 18900.1 et seq.)
   
4. Requires the statutory provisions establishing a VCF to remain in effect only until January 1 of the seventh calendar year following the VCF's first appearance on the PIT return. (R&TC Section 18873.)

FISCAL EFFECT: The FTB estimates that this bill would reduce General Fund revenues by $6,000 in both fiscal year (FY) 2027-28 and FY 2028-29.

COMMENTS:

1. The author has provided the following statement in support of this bill:

SB 1073 establishes the Black Cultural District Voluntary Contribution Fund, providing California taxpayers with a voluntary opportunity to invest directly in the preservation and long-term sustainability of the Historic South Los Angeles Black Cultural District.

Since this is one of the first Black Cultural Districts to be designated in California, it plays a vital role in safeguarding California's cultural heritage, supporting small businesses, and addressing the long-term impacts of displacement against the Black community. However, like many cultural districts, it faces chronic funding challenges that threaten its ability to thrive and remain accessible to the communities it serves.

SB 1073 offers a meaningful solution by allowing Californians to make voluntary contributions through their personal income tax returns, in partnership with the California Arts Council, to directly support the Black Cultural District. The bill does not raise taxes or impose new mandates. Instead, it empowers individuals who wish to support Black history and culture with a clear, voluntary way to do so.

By enabling public participation, SB 1073 helps ensure that the Historic South Los Angeles Black Cultural District can endure and be preserved for future generations.

1. This bill is supported by California Arts Advocates (CAA), which notes the following:

For generations, South LA has been a center of Black life, creativity, and leadership and has shaped nationally significant movements in music, arts, civil rights, and labor. South Los Angeles is home to multiple historic landmarks, including the Los Angeles Memorial Coliseum, home to the 1932 and 1984 Summer Olympic Games. South Los Angeles has also been a hub for various art movements and artists, including the Chicano art movement and the Black arts movement, deeply rooted in activism and cultural identity. Despite the profound cultural and historical significance, the Historic South Los Angeles Black Cultural District lacks a stable and dedicated source of funding to support long-term preservation.

A targeted, voluntary funding solution is needed to ensure the Historic South Los Angeles Black Cultural District can thrive, remain community-centered, and fulfill the promise of the historic designation. AB 1073 ensures that Californians can voluntarily donate to support the Historic South Los Angeles Black Cultural District and affirms the importance of protecting living cultural heritage, supporting community-led development, and ensuring the Black cultural spaces are preserved, celebrated, and sustained for future generations.

Cultural districts are crucial catalysts for both economic vitality and community enrichment. They are designed to boost local pride, reinforce neighborhood identity, and foster greater social cohesion. The CAA is a strong supporter of the Cultural District Program, which was created by AB 189 (2015-16), and measures like SB 1073 that promote the long-term, sustainable development of these districts statewide. We see SB 1073 as a potential model for other districts and, critically, we also advocate for sustained state funding for the entire cultural district program.

1. Committee Staff Comments:
   1. So many causes, so little space: There are countless worthy causes that would benefit from the inclusion of a VCF on the state's income tax returns. At the same time, space on the returns is limited. Thus, it could be argued that the current system for adding VCFs to the form is subjective and essentially rewards organizations and causes that can convince the Legislature to include their fund on the form.
   2. What would this bill do? For taxable years beginning on or after January 1, 2026, and before January 1, 2033, this bill would require the addition of the Fund as a VCF on the PIT return. After reimbursement of the FTB and State Controller for their administrative costs, all moneys in the Fund would be continuously appropriated to the Arts Council for allocation for the construction and maintenance of the Black Cultural District designated in south City of Los Angeles. Specifically, the money would be allocated to:
      1. Celebrate the diversity of California while unifying under an umbrella of shared values, and help to grow and sustain authentic grassroots arts and cultural opportunities;
      2. Increase the visibility of local artists and community participation in local arts and culture; and,
      3. Promote socioeconomic and ethnic diversity.

Given the wide-ranging purposes articulated above, it appears the Arts Council would be granted broad authority to allocate Fund moneys as it sees fit to support the creation, construction, and ongoing activities of the Black Cultural District. The Committee may wish to consider whether it would be appropriate to provide additional guidance for the awarding of Arts Council grants, or whether it is preferable to retain the existing language to provide maximum flexibility. Given the relatively modest support received by most VCFs, however, it is not clear to Committee staff how Fund proceeds could be sufficient to support actual construction projects, unless combined with funding from other sources.

• 1. Leveling the field: In an effort to promote a fair playing field, the Legislature enacted a series of requirements for new and extended VCFs. Specifically, R&TC Section 18873 was added by SB 1476 (Committee on Governance and Finance), Chapter 597, Statutes of 2016, to bring a degree of uniformity and improvement to the disparate VCF statutes. Among other things, Section 18873 provides the following parameters:
     1. The words "voluntary tax contribution" shall be included as part of the name of the fund;
     2. The website of the fund's administering agency shall report the process for awarding money, the amount of money spent on administration, and an itemization of how program funds were awarded, as specified;
     3. The minimum contribution amount that must be received for the fund to continue appearing on the tax return is $250,000, without subsequent inflation adjustments; and,
     4. The statutory provisions establishing a VCF shall remain in effect only until January 1 of the seventh calendar year following the VCF's first appearance on the return.

While this bill generally complies with the requirements set forth above, this bill specifies that the Arts Council shall report on its website "information provided by its grantee, if any, regarding the process for awarding money, the amount of money spent on administration, and an itemization of how program funds were awarded." Given that all of this information would ostensibly be available to the Arts Council as the awarding entity, it is not clear to Committee staff why information "if any" must first be reported by individual grantees to trigger the reporting requirement. The Committee may wish to consider simply specifying that the Arts Council provide the information required.

• 1. A note on administrative costs: VCFs often limit the amount of fund moneys the administering agency may use for its administrative costs to ensure that the bulk of fund proceeds go to their intended use. For example, the statutory provisions authorizing the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund specify that the Department of Food and Agriculture may only use up to 5% of the funds allocated to the department for administering its grant program. As such, the Committee may wish to consider a similar cap on the Art Council's use of Fund proceeds for administrative purposes.
  2. Proposed amendments: To bring the Arts Council's website reporting requirements into alignment with best practices and to limit the Art Council's use of Fund proceeds for administrative purposes, the author has agreed to accept the following amendments in Committee:
     1. Include language providing that "the Arts Council shall not use more than 5 percent of the moneys received pursuant to this article for administrative purposes."; and,
     2. On page 4, in line 8, strike "provided by its grantee, if any,".
  3. Related legislation:
     1. SB 575 (Laird) would authorize the addition of the California Sea Otter Voluntary Tax Contribution Fund as a VCF on the PIT return. SB 575 (Laird) is set to be heard by this Committee along with this bill.
     2. SB 881 (McNerney) would, among other things, extend the statutory provisions authorizing the Emergency Food for Families Voluntary Tax Contribution Fund until January 1, 2037, as provided. SB 881 (McNerney) is pending hearing by this Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

California Arts Advocates

City of Los Angeles Councilmember Curren D. Price, Jr.

Greater Los Angeles African American Chamber of Commerce

LA Commons

Partnership for Growth LA

Rising Communities

Underground Scholars Initiative at UC Berkeley

Opposition

None on file

Analysis Prepared by: M. David Ruff / REV. & TAX. / (916) 319-2098

 CONSENT  

Bill No: SB 1073

Author: Smallwood-Cuevas (D), et al.

Amended: 3/19/26

Vote: 21

SENATE REVENUE AND TAXATION COMMITTEE: 5-0, 3/25/26

AYES: McNerney, Alvarado-Gil, Ashby, Becker, Grayson

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT: Income taxes: voluntary contributions: Black Cultural District Voluntary Tax Contribution Fund

SOURCE: California Arts Advocates

DIGEST:

This bill establishes the Black Cultural District Voluntary Tax Contribution Fund and authorizes a taxpayer to make a voluntary contribution to the fund on their state personal income tax return for tax years 2026 through 2032.

ANALYSIS:

Existing law:

1. Allows taxpayers to contribute money from their own resources in excess of the amount they owe in taxes to Voluntary Contribution Funds (VCF) by checking a box on their state Personal Income Tax (PIT) return.
2. Establishes 18 VCFs on the PIT Return.
3. Generally requires the Franchise Tax Board (FTB) to remove a VCF due to a sunset provision or if the VCF fails to meet the statutory minimum contribution amount.
4. Generally requires FTB to annually determine whether estimated contributions to each VCF will exceed $250,000 to remain on the PIT form.
5. Provides that after a taxpayer contributes to a VCF, the FTB deposits all contributions, minus its administration costs, into a fund named for the VCF.
6. Requires that VCFs meet certain best practices:
7. Include “voluntary tax contribution” in the fund name;
8. Requires the administering agency’s internet website to report specific data related to the usage of the amounts received from a VCF;
9. Be repealed following January 1 of the seventh calendar year following the first appearance of the contribution on the tax return and be repealed as of December 1 of that year.
10. Establishes the California Arts Council as the state’s only public arts grants provider for the support of local arts infrastructure. (SB 1024, Zenovich, Chapter 1192, Statutes of 1975).
11. Tasks the Arts Council with establishing criteria and guidelines for state-designated cultural districts, which are geographical areas certified by the Arts Council with a concentration of cultural facilities, creative enterprises, or arts venues (AB 189, Bloom, Chapter 396, Statutes of 2015.)
12. Designates 24 cultural districts, including the Historic South Los Angeles Black Cultural District.

This bill:

1. Establishes Black Cultural District Voluntary Tax Contribution Fund.
2. Authorizes a taxpayer to make a voluntary contribution to the fund on their state PIT return from tax year 2026 to 2032, if the fund meets the minimum contribution amount of $250,000 annually.
3. Provides that if the amount of contributions for that calendar year is not at least equal to the minimum contribution amount, the VCF shall become inoperative on January 1 of that calendar year and be repealed on December 1 of that year.
4. Directs that contributions to this fund be allocated to Arts Council to construct and maintain the Black Cultural District designated in the South City of Los Angeles for the following.
5. Celebrate the diversity of California while unifying under an umbrella of shared values;
6. Help to grow and sustain authentic grassroots arts and cultural opportunities;
7. Increase the visibility of local artists;
8. Increase community participation in local arts and culture; and
9. Promote socioeconomic and ethnic diversity.
10. Directs the Arts Council to post on its website information regarding usage the allocated funds.

Background

Historic South Los Angeles Black Cultural District. In 2017, the Art Council designated 14 original cultural districts, and in 2026, the designated 10 new districts, including the Historic South Los Angeles Black Cultural District. The formal recognition of the Historic South Los Angeles Black Cultural District is a vital step toward recognizing South L.A.’s deep and enduring cultural contributions, addressing historic inequities, and ensuring Black cultural treasures are protected and celebrated. South L.A. has a historically high rate of Black residency and is home to the highest concentration of Black cultural assets in California, including museums, local businesses, restaurants, and entertainment venues.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

SUPPORT: (Verified 4/13/2026)

California Arts Advocates (Source)
Councilmember Curren D. Price, Jr., 9th District, City of Los Angeles

Greater Los Angeles African American Chamber of Commerce
LA Commons
Partnership for Growth LA
Rising Communities (formerly Community Health Councils)

OPPOSITION: (Verified 4/13/2026)

None received

ARGUMENTS IN SUPPORT: According to the author, “SB 1073 establishes the Black Cultural District Voluntary Contribution Fund, providing California taxpayers with a voluntary opportunity to invest directly in the preservation and long-term sustainability of the Historic South Los Angeles Black Cultural District. Since this is one of the first Black Cultural Districts to be designated in California, it plays a vital role in safeguarding California’s cultural heritage, supporting small businesses, and addressing the long-term impacts of displacement against the Black community. However, like many cultural districts, it faces chronic funding challenges that threaten its ability to thrive and remain accessible to the communities it serves. SB 1073 offers a meaningful solution by allowing Californians to make voluntary contributions through their personal income tax returns, in partnership with the California Arts Council, to directly support the Black Cultural District. The bill does not raise taxes or impose new mandates. Instead, it empowers individuals who wish to support Black history and culture with a clear, voluntary way to do so. By enabling public participation, SB 1073 helps ensure that the Historic South Los Angeles Black Cultural District can endure and be preserved for future generations.”

Prepared by: Haley Summers / REV. & TAX. / (916) 651-4117

4/14/26 16:16:06

**** END ****

SENATE COMMITTEE ON REVENUE AND TAXATION

Senator Jerry McNerney, Chair

2025 - 2026 Regular

Income taxes: voluntary contributions: Black Cultural District Voluntary Tax Contribution Fund

Establishes the Black Cultural District Voluntary Tax Contribution Fund; authorizes a taxpayer to make a voluntary contribution to the fund on their state personal income tax return for tax years 2026 through 2032.

Background

Voluntary Tax Contribution Funds. California allows taxpayers to donate their tax refund to one or several voluntary contribution funds (VCFs), commonly called “check-offs,” on their PIT return, and they can claim a deduction for the year the contribution is made. Their contribution to a VCF is only made if their tax payments and credits exceed the taxes they owe to the state. There are currently 18 VCFs on the PIT form, whose contributions are allocated to various organizations, including nonprofits that work on disease, resource conservation, and more.

The Legislature adds each VCF individually to the PIT return forms through legislation. With a few exceptions, VCFs remain on the return until the Franchise Tax Board (FTB) removes the VCF due to a sunset provision or the VCF fails to meet the statutory minimum contribution amount. By September 1 of each calendar year, the FTB must determine whether estimated contributions to specified funds will be less than the minimum contribution amount required for that calendar year. If FTB estimates a fund will fail to meet the minimum contribution amount for a calendar year, the fund is repealed on January 1 of the following calendar year. In general, the annual minimum contribution amount is $250,000, beginning the fund’s second year, with some adjusted for inflation. The VCFs below do not have a minimum contribution requirement:

• California Firefighters’ Memorial Foundation Fund;
• California Peace Officer Memorial Foundation Fund;
• California Senior Citizen Advocacy Voluntary Tax Contribution Fund; and
• California Seniors Special Fund.

In tax year 2025, there are 18 active VCFs. The contributions to these VCF during the year 2025 were as follows^[1]:

After a taxpayer contributes to a VCF, the FTB deposits all contributions, minus its administration costs, into a fund named for the VCF. State agencies administer most VCF funds to fund the purpose outlined in the legislation that placed the VCF on the PIT form. For other VCFs, the State Controller’s office allocates taxpayer contributions directly to the private organization without going through an administrative agency. For example, the State Controller’s office directly passes taxpayer contributions to the California Fire Foundation.

Senate Bill 1476. In December 2015, the Senate Committee on Governance and Finance held an oversight hearing on VCFs. The Committee identified best practices and reforms needed to ensure the state allocates taxpayer contributions toward charitable purposes transparently and in a timely manner. In 2016, the Legislature enacted SB 1476 (Committee on Governance and Finance), which codified those best practices and established general provisions for all VCFs enacted or extended after January 2, 2017. Specifically, the bill required:

• The words “voluntary tax contribution” must be included in the fund’s name;
• The administering agency’s website shall report specific data related to the usage of the amounts received via voluntary contribution;
• A voluntary contribution fund must receive a minimum contribution of $250,000 for the second calendar year after it first appears on the tax return and each year after that to remain on the tax return; and
• A voluntary tax contribution would remain in effect only until January 1 of the seventh calendar year following the first appearance of the contribution on the tax return and be repealed as of December 1 of that year.

Arts Council. In 1975, the Legislature created the California Arts Council, which is celebrating its 50^th anniversary as a state agency this year (SB 1024, Zenovich, 1975). The Arts Council is the state’s only public arts grants provider and supports local arts infrastructure and programming across the state through grants, programs, and services. The Art Council’s flagship programs are Arts in California Parks, Arts in Corrections, California Creative Corps, Creative Economy of California, Cultural Districts, Poetry Out Loud, Poet Laureate, CA Teen Poet Laureate, and Individual Artists Fellowships. The Art Council was allocated $34.5 million of state funds for the fiscal year 2025-26, and the Governor’s budget for 2026–27 proposes $36.1 million.

California Cultural Districts. AB 189 (Bloom, 2015) tasks the Arts Council with establishing criteria and guidelines for state-designated cultural districts, which are geographical areas certified by the Arts Council with a concentration of cultural facilities, creative enterprises, or arts venues that do any of the following:

• Attracts artists, creative entrepreneurs, and cultural enterprises.
• Encourages economic development and entrepreneurship in the creative community.
• Encourages the preservation of artistic and culturally historic buildings and structures.
• Fosters local cultural development.
• Provides a focal point for celebrating and strengthening the unique cultural identity.
• Promotes opportunity without generating displacement or expanding inequality.

In 2017, the Art Council designated 14 original districts, and in 2026, the Art Council designated 10 new districts, including the Historic South Los Angeles Black Cultural District.^[2]

Historic South Los Angeles Black Cultural District. The formal recognition of the Historic South Los Angeles Black Cultural District is a vital step toward recognizing South L.A.’s deep and enduring cultural contributions, addressing historic inequities, and ensuring Black cultural treasures are protected and celebrated. South L.A. has a historically high rate of Black residency and is home to the highest concentration of Black cultural assets in California, including museums, local businesses, restaurants, and entertainment venues.

The author wants to create a voluntary funding solution to ensure the Historic South Los Angeles Black Cultural District fulfills its promise as a historic designation by establishing the Black Cultural District Voluntary Tax Contribution Fund.

Proposed Law

Senate Bill 1073 establishes the Black Cultural District Voluntary Tax Contribution Fund; authorizes taxpayers to make contributions to the fund on their state PIT return in tax years 2026 through 2032; and allocates the fund’s monies to the Arts Council to construct and maintain the Black Cultural District designated in the South City of Los Angeles for the following:

• Celebrate the diversity of California while unifying under an umbrella of shared values;
• Help to grow and sustain authentic grassroots arts and cultural opportunities;
• Increase the visibility of local artists;
• Increase community participation in local arts and culture; and
• Promote socioeconomic and ethnic diversity.

The bill also specifies a minimum contribution amount of $250,000 for any calendar year to remain on the PIT return; provides that if the amount of the contributions estimated for that calendar year is not at least equal to the minimum contribution amount, the VCF shall become inoperative on January 1 of that calendar year and be repealed on December 1 of that year; and directs the Arts Council to post on its website information regarding usage the allocated funds.

State Revenue Impact

FTB estimates SB 1073 will result in a revenue loss of $0 in Fiscal Year (FY) 2026-27, $6,000 in FY 2027-28, and $6,000 in FY 2028-29.

Comments

1. Purpose of the bill. According to the author, “SB 1073 establishes the Black Cultural District Voluntary Contribution Fund, providing California taxpayers with a voluntary opportunity to invest directly in the preservation and long-term sustainability of the Historic South Los Angeles Black Cultural District. Since this is one of the first Black Cultural Districts to be designated in California, it plays a vital role in safeguarding California’s cultural heritage, supporting small businesses, and addressing the long-term impacts of displacement against the Black community. However, like many cultural districts, it faces chronic funding challenges that threaten its ability to thrive and remain accessible to the communities it serves. SB 1073 offers a meaningful solution by allowing Californians to make voluntary contributions through their personal income tax returns, in partnership with the California Arts Council, to directly support the Black Cultural District. The bill does not raise taxes or impose new mandates. Instead, it empowers individuals who wish to support Black history and culture with a clear, voluntary way to do so. By enabling public participation, SB 1073 helps ensure that the Historic South Los Angeles Black Cultural District can endure and be preserved for future generations.”

2. Equity. SB 1073 promotes social equity by affirming the state’s commitment to protecting living cultural heritage, supporting community-led development, and preserving Black cultural spaces to be celebrated and sustained for future generations. The bill also promotes social equity by creating an additional funding source for the Arts Council to use in the Historic South Los Angeles Black Cultural District, with specific requirements that the funding be used to bolster the district's arts, culture, and economy. This cultural district is one of the first state-designated Black cultural districts in California, marking a major milestone in the state’s cultural preservation efforts and in the Black community.

3. Many worthy causes. Today, the PIT return contains 18 VCFs. Even though the Legislature has added many VCFs over the years, the total year-over-year contributions to each fund have remained fairly consistent. As a result, extending current or adding new ones may make it more difficult for each to meet its minimum contribution requirement. Additionally, the majority of VCFs currently on the PIT return support statewide causes, even if they are geographically specific. For example, even though the Protect Our Coast and Oceans VCF and the State Parks Protection Fund are categorically geographic, their geographic scope spans the whole state. The Black Cultural District Voluntary Tax Contribution Fund would be the most geographically constrained VCF enacted by the Legislature. The Committee may wish to consider the precedent being set for using the state’s tax form to support individual district within the state.

4. Minimum contribution requirement. The $250,000 minimum contribution requirement for VCFs, which SB 1476 made mandatory for all new or extended VCFs, was intended to ensure that only funds with significant taxpayer support remain on the tax return, thereby justifying administrative costs and competition among funds. While paper forms posed clear cost and space concerns, the minimum requirement persists even as taxpayers have shifted over time to electronic filing. Additionally, despite the increased number of VCFs added to tax forms over the years, it is a rare occasion that a VCF fails to meet the minimum contribution requirement. In these cases, the Legislature has previously removed the minimum threshold for some VCFs, such as the California Senior Citizen Advocacy VCF (SB 309, Rubio, 2019; extended by AB 559, Boerner, 2023, which removed the minimum threshold). The Committee may wish to consider whether the reduced administrative costs resulting from the shift to electronic filing diminish the intent of the minimum contribution requirement.

5. Challenges presented by increased electronic filing. A key challenge for VCFs, from the increase in taxpayers using electronic filing, is that many taxpayers may never see these voluntary contribution options. Electronic tax preparation software often prioritizes credits and deductions, and VCF checkboxes may require proactive navigation or be otherwise unavailable in the software. As a result, even taxpayers who might want to contribute to a VCF may not be aware of the option, leading to lower overall contributions and making it difficult for VCFs to meet the $250,000 minimum. The Committee may wish to consider whether this reduced visibility issue diminishes the practical impact of the minimum contribution requirement and the fairness of removing a fund solely due to low contributions.

6. Related bills. The committee will also hear SB 881 (McNerney), which would extend the repeal date for the Emergency Food for Families Voluntary Tax Contribution Fund to January 1, 2037. Additionally, pending referral in the Assembly is SB 575 (Laird), which would reestablish the California Sea Otter Voluntary Tax Contribution Fund for tax years 2027 through 2034.

Support and Opposition

(3/20/26)

Support: California Arts Advocates (Sponsor)
Councilmember Curren D. Price, Jr., 9th District, City of Los Angeles

Greater Los Angeles African American Chamber of Commerce
LA Commons
Partnership for Growth LA
Rising Communities (formerly Community Health Councils)

Opposition: None received.

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1. https://www.ftb.ca.gov/file/personal/voluntary-contribution-funds/annual-contribution/index.html. ↑

2. https://www.caculturaldistricts.org/discover-the-districts. ↑