Today's Law As Amended

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SB-537 Income taxes: deductions: amounts due on real property tax bill. (2015-2016)



SECTION 1.
 The Legislature finds and declares all of the following:
(a) It is a well-established federal position that a deduction for personal property taxes is allowed to the extent the taxes are based upon the assessed value of the property, also known as ad valorem taxes, under Section 164 of the Internal Revenue Code.
(b) It is also a well-established federal position that a deduction for real property taxes is not limited to ad valorem taxes under Section 164 of the Internal Revenue Code.
(c) The Internal Revenue Code limits a deduction for personal property taxes to ad valorem taxes, but no such limitation applies to a deduction for real property taxes.
(d) It has been concluded that assessments under the Mello-Roos Community Facilities Act of 1982 and certain other special taxes in California are deductible under Section 164 of the Internal Revenue Code even though they are not based upon the assessed value of the property.
(e) California law conforms to the federal law described in subdivisions (a) to (d), inclusive, and California taxpayers are currently deducting taxes that are not based upon the assessed value of the property.
(f) California is in a unique position with respect to the number of taxpayers subject to assessments under the Mello-Roos Community Facilities Act of 1982 and certain other special taxes, and California taxpayers have a right to protect their current property tax deduction.

SEC. 2.

 Section 17239 is added to the Revenue and Taxation Code, to read:

17239.
 For each taxable year beginning on or after January 1, 2015, there shall be allowed as an itemized deduction the amount paid by the taxpayer for the amount due on the taxpayer’s real property tax bill, including, but not limited to, real property taxes, personal property taxes, special taxes, special assessments, fees, or other charges.

SEC. 3.

 Section 24356.9 is added to the Revenue and Taxation Code, to read:

24356.9.
 For each taxable year beginning on or after January 1, 2015, there shall be allowed as a deduction the amount paid by the taxpayer for the amount due on the taxpayer’s real property tax bill, including, but not limited to, real property taxes, personal property taxes, special taxes, special assessments, fees, or other charges.
SEC. 4.
 This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.