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AB-1765 Personal income taxes: credits: qualified disaster area.(2017-2018)

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Date Published: 05/15/2018 09:00 PM
AB1765:v98#DOCUMENT

Amended  IN  Assembly  May 15, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill
No. 1765

Introduced by Assembly Members Quirk-Silva and Aguiar-Curry
(Coauthors: Assembly Members Burke, Caballero, Choi, Cooper, Daly, Friedman, Levine, Limón, McCarty, Nazarian, Voepel, and Waldron)

January 04, 2018

An act to amend Section 27388.1 of the Government Code, add Section 17053.44 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 1765, as amended, Quirk-Silva. Building Homes and Jobs Act: fee waiver: states of emergency. Personal income taxes: credits: qualified disaster area.
Existing law, the Building Homes and Jobs Act, imposes a charge, except as provided, of $75 to be paid at the time of the recording of every real estate instrument, paper, or notice required or permitted by law to be recorded, per each single transaction per single parcel of real property, not to exceed $225. Existing law requires a county recorder to send revenues from the charge to the controller for deposit into a fund in the State Treasury to be expended for various purposes related to homes and jobs. the Personal Income Tax law, allows various credits against the taxes imposed by that law.
This bill would waive that charge with regard to any real estate instrument, paper, or notice recorded in connection with real property upon which repairs or reconstruction are taking place as a direct result of a disaster for which the Governor has declared a state of emergency. allow a credit against that tax for each taxable year beginning on or after January 1, 2019, and before January 1, 2020, in an amount equal to 50% of the amount paid or incurred, not to exceed $1,000, for losses sustained by a taxpayer and not compensated for by insurance or otherwise that occurred in a qualified disaster area, as defined.
This bill would take effect immediately as a tax levy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 17053.44 is added to the Revenue and Taxation Code, to read:

17053.44.
 (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2020, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to 50 percent of the amount paid or incurred by a taxpayer, not to exceed one thousand dollars ($1,000), for losses sustained by a taxpayer and not compensated for by insurance or otherwise that occurred in a qualified disaster area as a result of the disaster that is the subject of the Governor’s declaration.
(b) For purposes of this section, “qualified disaster area” means an area where the Governor declared a disaster between July 1, 2017, and January 31, 2018.
(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 taxable year, and succeeding five years if necessary, until the credit is exhausted.
(d) Section 41 shall not apply to the credit allowed by this section.

SECTION 1.Section 27388.1 of the Government Code is amended to read:
27388.1.

(a)(1)Commencing January 1, 2018, and except as provided in paragraph (2), in addition to any other recording fees specified in this code, a fee of seventy-five dollars ($75) shall be paid at the time of recording of every real estate instrument, paper, or notice required or permitted by law to be recorded, except those expressly exempted from payment of recording fees, per each single transaction per parcel of real property. The fee imposed by this section shall not exceed two hundred twenty-five dollars ($225). “Real estate instrument, paper, or notice” means a document relating to real property, including, but not limited to, the following: deed, grant deed, trustee’s deed, deed of trust, reconveyance, quit claim deed, fictitious deed of trust, assignment of deed of trust, request for notice of default, abstract of judgment, subordination agreement, declaration of homestead, abandonment of homestead, notice of default, release or discharge, easement, notice of trustee sale, notice of completion, UCC financing statement, mechanic’s lien, maps, and covenants, conditions, and restrictions.

(2)(A)The fee described in paragraph (1) shall not be imposed on any real estate instrument, paper, or notice recorded in connection with a transfer subject to the imposition of a documentary transfer tax as defined in Section 11911 of the Revenue and Taxation Code or on any real estate instrument, paper, or notice recorded in connection with a transfer of real property that is a residential dwelling to an owner-occupier.

(B)The fee described in paragraph (1) shall not be imposed on any real estate instrument, paper, or notice recorded in connection with real property upon which repairs or reconstruction are taking place as a direct result of a disaster for which the Governor has declared a state of emergency.

(b)The county recorder shall remit quarterly, on or before the last day of the month next succeeding each calendar quarterly period, the fees, after deduction of any actual and necessary administrative costs incurred by the county recorder in carrying out this section, to the Controller for deposit in the Building Homes and Jobs Trust Fund established by Section 50470 of the Health and Safety Code, to be expended for the purposes set forth in that section. In addition, the county shall pay to the Controller interest, at the legal rate, on any funds not paid to the Controller before the last day of the month next succeeding each quarterly period.

(c)If the Department of Housing and Community Development determines that any moneys derived from fees collected are being allocated by the state for a purpose not authorized by Section 50470 of the Health and Safety Code, the county recorder shall, upon notice of the determination, immediately cease collection of the fees, and shall resume collection of those fees only upon notice that the moneys derived from the fees collected are being allocated by the state only for a purpose authorized by Section 50470 of the Health and Safety Code.

SEC. 2.

 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.