Bill Text: CA AB1867 | 2023-2024 | Regular Session | Introduced
Bill Title: Personal Income Tax Law: deductions: homeowners’ insurance premiums.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2024-04-29 - In committee: Set, second hearing. Held under submission. [AB1867 Detail]
Download: California-2023-AB1867-Introduced.html
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 1867
| Introduced by Assembly Member Sanchez |
January 18, 2024 |
An act to add and repeal Section 17226 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1867, as introduced, Sanchez.
Personal Income Tax Law: deductions: homeowners’ insurance premiums.
The Personal Income Tax Law, in modified conformity with federal income tax laws, generally allows various deductions in computing the income that is subject to the tax imposed by that law.
This bill, for taxable years beginning on or after January 1, 2024, and before January 1, 2029, would allow a deduction in computing income for the amount paid or incurred by a taxpayer during the taxable year as premiums on a homeowners’ insurance policy on the taxpayer’s primary residence, as defined.
Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would include additional information required for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 17226 is added to the Revenue and Taxation Code, to read:17226.
(a) For taxable years beginning on or after January 1, 2024, and before January 1, 2029, there shall be allowed as a deduction the amount paid or incurred by a taxpayer during the taxable year as premiums on a homeowners’ insurance policy on the taxpayer’s primary residence.(b) For purposes of this section, “primary residence” means a residence that is eligible for either of the following:
(1) The homeowner’s exemption, as described in Section 218.
(2) The veteran’s exemption, as described in Section 205 and subdivisions (o), (p), (q), and (r) of Section 3 of Article XIII of the California Constitution.
(c) (1) For purposes of complying with Section 41, the Legislature finds and declares as follows:
(A) The specific goal, purpose, and objective that the deduction allowed by this section will achieve is to assist homeowners in affording the cost of homeowners’ insurance, which has increased in price as some carriers have decided not to insure homes in certain parts of the state and others have exited the state, leaving Californians with fewer options for this important insurance coverage.
(B) The performance indicators for the Legislature to use in determining whether the deduction achieves the stated goal, purpose, and objective is the number of taxpayers receiving a deduction pursuant to this section.
(2) (A) No later than December 1, 2025, and each December 1 thereafter, the Franchise Tax Board shall submit a report to the Legislature, in compliance with Section 9795 of the Government Code, detailing the number of taxpayers that received a deduction pursuant to this section for the most recent taxable year to the extent that data is available.
(B) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542.
(d) This section shall remain in effect only until December 1, 2029, and as of that date is repealed.
