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AB-697 Personal income tax: credits: senior citizen renters.(2015-2016)

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Amended  IN  Assembly  March 26, 2015

CALIFORNIA LEGISLATURE— 2015–2016 REGULAR SESSION

Assembly Bill No. 697


Introduced by Assembly Member Chu

February 25, 2015


An act to amend Section 1101.5 of the Civil Code, relating to water conservation. An act to add and repeal Section 17053 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 697, as amended, Chu. Water-conserving plumbing fixtures. Personal income tax: credits: senior citizen renters.
The Personal Income Tax Law allows various credits against the tax imposed by that law, including for a qualified renter, defined as an individual who rented and occupied premises in this state which constituted his or her principal place of residence during at least 50% of the taxable year, in a specified amount based on adjusted gross income, as provided.
This bill would allow, for each taxable year beginning on or after January 1, 2016, and before January 1, 2019, a credit in an amount equal to the increase in rent of a qualified residence in specified counties for the taxable year compared to the previous taxable year that is paid or incurred by a qualified taxpayer, which is defined as a senior citizen meeting a certain low-income requirements.
This bill would take effect immediately as a tax levy.

Existing law requires the replacement of plumbing fixtures that are not water conserving, as defined as noncompliant plumbing fixtures, in residential and commercial real property built and available for use on or before January 1, 1994, as specified.

This bill would make technical, nonsubstantive changes to these provisions.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 (a) The Legislature finds and declares all of the following:
(1) According to a Kaiser Family Foundation study, California’s seniors have the nation’s highest poverty rate.
(2) Twenty percent of California adults over 65 years of age live below the poverty threshold of about $16,000, when the higher cost of housing and health care are taken into account.
(3) Nationally, homelessness among seniors is projected to rise by 33 percent between 2010 and 2020, and by 100 percent between 2010 and 2050, according to a 2010 report from the Homelessness Research Institute.
(4) The Los Angeles Homeless Services Authority reports that from 2011 to 2013, inclusive, Los Angeles County had a 29.1 percent increase in the number of homeless people 62 years of age and older.
(5) According to a March 2013 report of the National Low Income Housing Coalition, California is the second least affordable state behind Hawaii.
(6) According to the federal Department of Housing and Urban Development, fair market rent in California for a two-bedroom apartment is $1,341 a month. In order to afford this level of rent and utilities, without paying more than 30 percent of income on housing, a household needs to earn $4,470 monthly or $53,640 annually.
(7) Three out of the 10 most expensive metropolitan areas and six out of the 10 most expensive counties nationally are in California.
(8) In order to slow the growing numbers of homeless senior citizens being priced out of their homes, California must begin to explore practical means to slow this disaster.
(b) The Legislature hereby enacts this act to test if the personal income tax credit described in Section 17053 of the Revenue and Taxation Code is a viable method to help low-income California senior renters remain in their homes.

SEC. 2.

 Section 17053 is added to the Revenue and Taxation Code, to read:

17053.
 (a) For each taxable year beginning on or after January 1, 2016, and before January 1, 2019, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to the increase in rent of a qualified residence for the taxable year compared to the previous taxable year that is paid or incurred by a qualified taxpayer.
(b) For the purposes of this section, the following definitions shall apply:
(1) “Qualified taxpayer” means a person with all of the following characteristics:
(A) He or she is 62 years of age or older.
(B) He or she rents a qualified residence as his or her primary residence, he or she is named on the lease for that residence, and he or she has rented that residence for a period of 12 months or more.
(C) His or her combined annual household income is fifty thousand dollars ($50,000) or less, more than one-third of which is spent on rent.
(2) “Qualifying residence” means a property that is located in the County of Alameda, the City and County of San Francisco, the County of Ventura, and the County of Santa Clara.
(c) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following year, and succeeding seven years, if necessary, until the total credit is exhausted.
(d) A credit shall not be allowed under this section if a renter’s credit has been claimed by a taxpayer pursuant to Section 17053.5.
(e) This section shall remain in effect only until December 1, 2019, and as of that date is repealed.

SEC. 3.

 This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.
SECTION 1.Section 1101.5 of the Civil Code is amended to read:
1101.5.

(a)On or before January 1, 2019, all noncompliant plumbing fixtures in a multifamily residential real property and in a commercial real property shall be replaced with water-conserving plumbing fixtures.

(b)An owner or the owner’s agent may enter the owner’s property for the purpose of installing, repairing, testing, and maintaining water-conserving plumbing fixtures required by this section, consistent with the notice requirements of Section 1954.

(c)On and after January 1, 2019, the water-conserving plumbing fixtures required by this section shall be operating at the manufacturer’s rated water consumption at the time that the tenant takes possession. A tenant shall be responsible for notifying the owner or owner’s agent if the tenant becomes aware that a water-conserving plumbing fixture within his or her unit is not operating at the manufacturer’s rated water consumption. The owner or owner’s agent shall correct an inoperability in a water-conserving plumbing fixture upon notice by the tenant or if detected by the owner or the owner’s agent.

(d)(1)On and after January 1, 2014, all noncompliant plumbing fixtures in a multifamily residential real property and in a commercial real property shall be replaced with water-conserving plumbing fixtures in the following circumstances:

(A)For building additions in which the sum of concurrent building permits by the same permit applicant would increase the floor area of the space in a building by more than 10 percent, the building permit applicant shall replace all noncompliant plumbing fixtures in the building.

(B)For building alterations or improvements in which the total construction cost estimated in the building permit is greater than one hundred fifty thousand dollars ($150,000), the building permit applicant shall replace all noncompliant plumbing fixtures that service the specific area of the improvement.

(C)Notwithstanding subparagraph (A) or (B), for any alterations or improvements to a room in a building that require a building permit and that room contains any noncompliant plumbing fixtures, the building permit applicant shall replace all noncompliant plumbing fixtures in that room.

(2)Replacement of all noncompliant plumbing fixtures with water-conserving plumbing fixtures, as described in paragraph (1), shall be a condition for issuance of a certificate of final completion and occupancy or final permit approval by the local building department.

(e)On and after January 1, 2019, a seller or transferor of multifamily residential real property or of commercial real property shall disclose to the prospective purchaser or transferee, in writing, the requirements of subdivision (a) and whether the property includes any noncompliant plumbing fixtures. This disclosure may be included in other transactional documents.