Bill Text: CA SB206 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Income tax credit: principal residence.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2010-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB206 Detail]

Download: California-2009-SB206-Amended.html

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BILL NUMBER: SB 206	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 28, 2009

INTRODUCED BY   Senator Dutton

                        FEBRUARY 23, 2009

    An act relating to motor vehicle insurance. 
 An act to add and repeal Section 17059.5 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 206, as amended, Dutton.  Motor vehicle insurance:
coverage limits.  Income tax credit: principal
residence.  
   The Personal Income Tax Law authorizes various credits against the
taxes imposed by that law.  
   This bill would allow a credit to a qualified taxpayer, as
defined, who purchases a qualified principal residence, as defined,
on and after January 1, 2009, and before December 1, 2009. The credit
would be an amount equal to 10% of the purchase price, not exceed
$8,000, as provided.  
   This bill would take effect immediately as a tax levy. 

   Existing law sets minimum coverage limits for motor vehicle
insurance.  
   This bill would state that it is the intent of the Legislature to
enact legislation that would request the Department of Insurance to
review those limits, as specified, and report its findings to the
Legislature. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 17059.5 is added to the 
 Revenue and Taxation Code   , to read:  
   17059.5.  (a) (1) For taxable years beginning on or after January
1, 2009, and before January 1, 2010, in the case of a qualified
taxpayer who purchases a qualified principal residence on or after
January 1, 2009, and before December 1, 2009, there shall be allowed
as a credit against the "net tax," as defined in Section 17039, an
amount equal to 10 percent of the purchase price of the qualified
principal residence, not to exceed eight thousand dollars ($8,000).
   (2) The credit under this section shall be allowed for the
purchase of only one qualified principal residence with respect to
any taxpayer.
   (3) A taxpayer may, but is not required to, reserve a credit prior
to close of escrow. To reserve a credit, the taxpayer and seller
shall jointly sign and submit to the Franchise Tax Board a
certification that they have entered into the agreement on or after
January 1, 2009, and before December 1, 2009. Upon receipt of the
joint certification, the Franchise Tax Board shall reserve the credit
for the taxpayer.
   (b) (1) For the purposes of this section, "qualified principal
residence" means a single-family residence, whether detached or
attached, that is purchased to be the principal residence of the
taxpayer for a minimum of three years and is eligible for the
homeowner's exemption under Section 218.
   (2) For the purposes of this section "qualified taxpayer" means
the buyer has not owned a principal residence during the three-year
period prior to the date of purchase and does not have adjusted gross
income over ninety-five thousand dollars ($95,000) or one hundred
seventy dollars ($170,000) for joint filers.
   (3) If the taxpayer does not occupy the qualified principal
residence as his or her principal residence for at least three years
immediately following the purchase, the credit shall be disallowed,
and the taxpayer shall be liable for any underpayments attributable
to the disallowance credit.
   (c) (1) In the case of married taxpayers filing separately, the
credit allowed under subdivision (a) shall be equally divided between
the taxpayers.
   (2) If two or more taxpayers who are not married purchase a
qualified principal residence, the amount of the credit allowed under
subdivision (a) shall be allocated among the taxpayers in the same
manner as each taxpayer's percentage of ownership, except that the
total amount of the credits allowed to all of these taxpayers shall
not exceed eight thousand dollars ($8,000).
   (d) The taxpayer shall claim the credit on a timely filed original
return.
   (e) The date a certification is received shall be determined by
the Franchise Tax Board.
   (1) The determinations of the Franchise Tax Board with respect to
the date a certification is received, and whether a return has been
timely filed for purposes of this section, may not be reviewed in any
administrative or judicial proceeding.
   (2) Any disallowance of a credit claimed due to a determination
under this subdivision, shall be treated as a mathematical error
appearing on the return. Any amount of tax resulting from that
disallowance may be assessed by the Franchise Tax Board in the same
manner as provided by Section 19051.
   (f) The Franchise Tax Board may prescribe rules, guidelines, or
procedures necessary or appropriate to carry out the purposes of this
section, including any guidelines regarding the allocation of the
credit allowed under this section. Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code shall not apply to any rule, guideline, or procedure prescribed
by the Franchise Tax Board pursuant to this section.
   (g) The credit allowed by this section is not a business credit
within the meaning of Section 17039.2.
   (h) This section shall remain in effect only until December 1,
2010, and as of that date is repealed. 
   SEC. 2.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  
  SECTION 1.    It is the intent of the Legislature
to enact legislation that would request the Department of Insurance
to review the sufficiency of the required minimum coverage limits for
motor vehicle insurance and report its findings to the Legislature.