Bill Text: CA SB1103 | 2015-2016 | Regular Session | Amended
Bill Title: Personal income taxes: renters' credit.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Failed) 2016-11-30 - From committee without further action. [SB1103 Detail]
Download: California-2015-SB1103-Amended.html
BILL NUMBER: SB 1103 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 27, 2016
INTRODUCED BY Senator Cannella
( Principal coauthor: Assembly Member
Lackey )
FEBRUARY 17, 2016
An act to amend Section 17053.5 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1103, as amended, Cannella. Taxation:
Personal income taxes: renters' credit.
The Personal Income Tax Law authorizes various credits against the
taxes imposed by that law, including a credit for qualified renters
in the amount of $120 for married couples filing joint returns, heads
of household, and surviving spouses if adjusted gross income is
$50,000, as adjusted currently to $76,518, or less, and in the amount
of $60 for other individuals if adjusted gross income is $25,000, as
adjusted currently to $38,259, or less.
This bill would, bill, for taxable
years beginning on and after January 1, 2017,
2016, instead would increase this credit for a qualified
renter to $184 $200 for married couples
filing joint returns, heads of household, and surviving spouses,
if adjusted gross income is $100,000 or less and to an
amount equal and to $92
$100 for other individuals whose adjusted gross income
is $50,000 or less. The bill would require the Franchise Tax Board
to annually adjust the adjusted gross income amounts for inflation,
beginning January 1, 2018. individuals.
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17053.5 of the
Revenue and Taxation Code is amended to read:
17053.5. (a) (1) For a qualified renter, there shall be allowed a
credit against his or her "net tax," as defined in Section 17039.
The amount of the credit shall be as follows:
(A) For married couples filing joint returns, heads of household,
and surviving spouses, as defined in Section 17046, the credit shall
be equal to one hundred twenty dollars ($120) for taxable years
beginning before January 1, 2016, and two hundred dollars ($200) for
taxable years beginning on or after January 1, 2016, if
adjusted gross income is fifty thousand dollars ($50,000) or less.
(B) For other individuals, the credit shall be equal to sixty
dollars ($60) for taxable years beginning before January 1,
2016, and one hundred dollars ($100) for taxable years beginning on
or after January 1, 2016, if adjusted gross income is
twenty-five thousand dollars ($25,000) or less.
(2) Except as provided in subdivision (b), a husband and wife
shall receive but one credit under this section. If the husband and
wife file separate returns, the credit may be taken by either or
equally divided between them, except as follows:
(A) If one spouse was a resident for the entire taxable year and
the other spouse was a nonresident for part or all of the taxable
year, the resident spouse shall be allowed one-half the credit
allowed to married persons and the nonresident spouse shall be
permitted one-half the credit allowed to married persons, prorated as
provided in subdivision (e).
(B) If both spouses were nonresidents for part of the taxable
year, the credit allowed to married persons shall be divided equally
between them subject to the proration provided in subdivision (e).
(b) For a husband and wife, if each spouse maintained a separate
place of residence and resided in this state during the entire
taxable year, each spouse will be allowed one-half the full credit
allowed to married persons provided in subdivision (a).
(c) For purposes of this section, a "qualified renter" means an
individual who satisfies both of the following:
(1) Was a resident of this state, as defined in Section 17014.
(2) Rented and occupied premises in this state which constituted
his or her principal place of residence during at least 50 percent of
the taxable year.
(d) "Qualified renter" does not include any of the following:
(1) An individual who for more than 50 percent of the taxable year
rented and occupied premises that were exempt from property taxes,
except that an individual, otherwise qualified, is deemed a qualified
renter if he or she or his or her landlord pays possessory interest
taxes, or the owner of those premises makes payments in lieu of
property taxes that are substantially equivalent to property taxes
paid on properties of comparable market value.
(2) An individual whose principal place of residence for more than
50 percent of the taxable year is with another person who claimed
that individual as a dependent for income tax purposes.
(3) An individual who has been granted or whose spouse has been
granted the homeowners' property tax exemption during the taxable
year. This paragraph does not apply to an individual whose spouse has
been granted the homeowners' property tax exemption if each spouse
maintained a separate residence for the entire taxable year.
(e) An otherwise qualified renter who is a nonresident for any
portion of the taxable year shall claim the credits set forth in
subdivision (a) at the rate of one-twelfth of those credits for each
full month that individual resided within this state during the
taxable year.
(f) A person claiming the credit provided in this section shall,
as part of that claim, and under penalty of perjury, furnish that
information as the Franchise Tax Board prescribes on a form supplied
by the board.
(g) The credit provided in this section shall be claimed on
returns in the form as the Franchise Tax Board may from time to time
prescribe.
(h) For purposes of this section, "premises" means a house or a
dwelling unit used to provide living accommodations in a building or
structure and the land incidental thereto, but does not include land
only, unless the dwelling unit is a mobilehome. The credit is not
allowed for any taxable year for the rental of land upon which a
mobilehome is located if the mobilehome has been granted a homeowners'
exemption under Section 218 in that year.
(i) This section shall become operative on January 1, 1998, and
applies to any taxable year beginning on or after January 1, 1998.
(j) For each taxable year beginning on or after January 1, 1999,
the Franchise Tax Board shall recompute the adjusted gross income
amounts set forth in subdivision (a). The computation shall be made
as follows:
(1) The Department of Industrial Relations shall transmit annually
to the Franchise Tax Board the percentage change in the California
Consumer Price Index for all items from June of the prior calendar
year to June of the current year, no later than August 1 of the
current calendar year.
(2) The Franchise Tax Board shall compute an inflation adjustment
factor by adding 100 percent to the portion of the percentage change
figure which is furnished pursuant to paragraph (1) and dividing the
result by 100.
(3) The Franchise Tax Board shall multiply the amount in
subparagraph (B) of paragraph (1) of subdivision (d) for the
preceding taxable year by the inflation adjustment factor determined
in paragraph (2), and round off the resulting products to the nearest
one dollar ($1).
(4) In computing the amounts pursuant to this subdivision, the
amounts provided in subparagraph (A) of paragraph (1) of subdivision
(a) shall be twice the amount provided in subparagraph (B) of
paragraph (1) of subdivision (a).
SECTION 1. Section 17053.5 of the Revenue and
Taxation Code is amended to read:
17053.5. (a) (1) For a qualified renter, there shall be allowed a
credit against his or her "net tax," as defined in Section 17039.
The amount of the credit shall be as follows:
(A) For taxable years beginning before January 1, 2017:
(i)
For married couples filing joint returns, heads of household, and
surviving spouses, as defined in Section 17046, the credit shall be
equal to one hundred twenty dollars ($120) if adjusted gross income
is fifty thousand dollars ($50,000) or less.
(ii)
For other individuals, the credit shall be equal to sixty dollars
($60) if adjusted gross income is twenty-five thousand dollars
($25,000) or less.
(B) For taxable years beginning on or after January 1, 2017:
(i) For married couples filing joint returns, heads of household,
and surviving spouses, as defined in Section 17046, the credit shall
be equal to one hundred eighty-four dollars ($184) if adjusted gross
income is one hundred thousand dollars ($100,000) or less.
(ii) For other individuals, the credit shall be equal to
ninety-two dollars ($92) if adjusted gross income is fifty thousand
dollars ($50,000) or less.
(2) Except as provided in subdivision (b), a husband and wife
shall receive one credit under this section. If the husband and wife
file separate returns, the credit may be taken by either or equally
divided between them, except as follows:
(A) If one spouse was a resident for the entire taxable year and
the other spouse was a nonresident for part or all of the taxable
year, the resident spouse shall be allowed one-half the credit
allowed to married persons and the nonresident spouse shall be
permitted one-half the credit allowed to married persons, prorated as
provided in subdivision (e).
(B) If both spouses were nonresidents for part of the taxable
year, the credit allowed to married persons shall be divided equally
between them subject to the proration provided in subdivision (e).
(b) For a husband and wife, if each spouse maintained a separate
place of residence and resided in this state during the entire
taxable year, each spouse will be allowed one-half the full credit
allowed to married persons provided in subdivision (a).
(c) For purposes of this section, a "qualified renter" means an
individual who satisfies both of the following:
(1) Was a resident of this state, as defined in Section 17014.
(2) Rented and occupied premises in this state which constituted
his or her principal place of residence during at least 50 percent of
the taxable year.
(d) "Qualified renter" does not include any of the following:
(1) An individual who for more than 50 percent of the taxable year
rented and occupied premises that were exempt from property taxes,
except that an individual, otherwise qualified, is deemed a qualified
renter if he or she or his or her landlord pays possessory interest
taxes, or the owner of those premises makes payments in lieu of
property taxes that are substantially equivalent to property taxes
paid on properties of comparable market value.
(2) An individual whose principal place of residence for more than
50 percent of the taxable year is with any other person who claimed
that individual as a dependent for income tax purposes.
(3) An individual who has been granted or whose spouse has been
granted the homeowners' property tax exemption during the taxable
year. This paragraph does not apply to an individual whose spouse has
been granted the homeowners' property tax exemption if each spouse
maintained a separate residence for the entire taxable year.
(e) An otherwise qualified renter who is a nonresident for any
portion of the taxable year shall claim the credits set forth in
subdivision (a) at the rate of one-twelfth of those credits for each
full month that individual resided within this state during the
taxable year.
(f) A person claiming the credit provided in this section shall,
as part of that claim, and under penalty of perjury, furnish that
information as the Franchise Tax Board prescribes on a form supplied
by the board.
(g) The credit provided in this section shall be claimed on
returns in the form as the Franchise Tax Board may from time to time
prescribe.
(h) For purposes of this section, "premises" means a house or a
dwelling unit used to provide living accommodations in a building or
structure and the land incidental thereto, but does not include land
only, unless the dwelling unit is a mobilehome. The credit is not
allowed for any taxable year for the rental of land upon which a
mobilehome is located if the mobilehome has been granted a homeowners'
exemption under Section 218 in that year.
(i) This section shall become operative on January 1, 1998, and
applies to any taxable year beginning on or after January 1, 1998.
(j) For each taxable year beginning on or after January 1, 1999,
and before January 1, 2017, and for each taxable year beginning on or
after January 1, 2018, the Franchise Tax Board shall recompute the
adjusted gross income amounts set forth in subparagraphs (A) and (B),
respectively, of paragraph (1) of subdivision (a). The computation
shall be made as follows:
(1) The Department of Industrial Relations shall transmit annually
to the Franchise Tax Board the percentage change in the California
Consumer Price Index for all items from June of the prior calendar
year to June of the current year, no later than August 1 of the
current calendar year.
(2) The Franchise Tax Board shall compute an inflation adjustment
factor by adding 100 percent to that portion of the percentage change
figure furnished pursuant to paragraph (1) and dividing the result
by 100.
(3) The Franchise Tax Board shall multiply the amounts in
paragraph (1) of subdivision (a) for the preceding taxable year by
the inflation adjustment factor determined in paragraph (2), and
round off the resulting products to the nearest one dollar ($1).
(4) (A) In computing the amounts pursuant to this subdivision, the
amounts provided in clause (i) of subparagraph (A) of paragraph (1)
of subdivision (a) shall be twice the amount provided in clause (ii)
of subparagraph (A) of paragraph (1) of subdivision (a).
(B) In computing the amounts pursuant to this subdivision, the
amounts provided in clause (i) of subparagraph (B) of paragraph (1)
of subdivision (a) shall be twice the amount provided in clause (ii)
of subparagraph (B) of paragraph (1) of subdivision (a).
SEC. 2. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
