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

California Senate Bill 206 (Prior Session Legislation)

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

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

BILL NUMBER: SB 206	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 9, 2009
	AMENDED IN SENATE  MAY 26, 2009
	AMENDED IN SENATE  APRIL 28, 2009

INTRODUCED BY   Senator Dutton

                        FEBRUARY 23, 2009

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



	LEGISLATIVE COUNSEL'S DIGEST


   SB 206, as amended, Dutton. 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, during a specified period. The
credit would be an amount equal to 10% of the purchase price, not to
exceed $8,000, as provided.
   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 17059.5 is added to the Revenue and Taxation
Code, to read:
   17059.5.  (a)  (1)    In the case of a 
qualified  taxpayer who purchases a qualified principal
residence on or after the date  of   that 
the act adding this section takes effect and before the date that is
the same day of the 12th month that follows the effective date of
this section, 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). The credit shall be allowed
for the taxable year in which the qualified principal residence is
purchased.
   (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 during the
time period specified in subdivision (a) for the purchase of a
qualified principal residence. 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 has been  previously occupied or 
foreclosed upon, and 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
either of the following:  
   (A) A purchaser that 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. 

   (B) A purchaser of a principal residence that has been foreclosed
upon  
   (3) 
    (2)  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 of the credit. 
   (c) (1) In the case of married taxpayers, 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) 
    (c)  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) 
    (d   )  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) 
    (e)  The credit allowed by this section is not a
business credit within the meaning of Section 17039.2. 
   (h) 
    (f)  This section shall remain in effect only until
December 1, 2012, 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.