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AB-492 Property tax assistance: eligibility.(2019-2020)

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Date Published: 04/12/2019 04:00 AM
AB492:v98#DOCUMENT

Amended  IN  Assembly  April 11, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill No. 492


Introduced by Assembly Member Nazarian

February 12, 2019


An act to amend amend, repeal, and add Sections 20501 and 20505 of, to amend the heading of Chapter 1 (commencing with Section 20501) of Part 10.5 of Division 2 of, and to repeal and add Sections 20514, 20543, and 20544 of, the Revenue and Taxation Code, relating to property tax assistance.


LEGISLATIVE COUNSEL'S DIGEST


AB 492, as amended, Nazarian. Property tax assistance: eligibility.
The Gonsalves-Deukmejian-Petris Senior Citizens Property Tax Assistance Law authorizes individuals who meets specified criteria, including that they either be 62 years of age or older or blind or disabled, as defined, to file with the Franchise Tax Board a claim for assistance. That law authorizes assistance in an amount equal to a percentage, determined as provided, of either the property taxes accrued and paid by the claimant on their residential dwelling or, with respect to a claimant renting their residence, the applicable statutory property tax equivalent. That law prohibits assistance if the claimant’s gross household income exceeds $35,251, adjusted as provided. That law requires a claim for assistance under these provisions, and a specified additional declaration applicable in the case of assistance used to pay delinquent property taxes, to be under penalty of perjury.
This bill bill, until December 1, 2025, would recast these provisions as the Gonsalves-Deukmejian-Petris Property Tax Assistance Law and authorize any individual, without regard to age, blindness, or disability, who otherwise meets the above-described criteria to file a claim for assistance. The bill would decrease the maximum gross household income for a claimant to qualify for assistance from $35,251 to $30,000, adjusted as provided. provided, until December 1, 2025, and would thereafter repeal this requirement. The bill would also make various conforming changes.
The bill would make specified findings and declarations regarding the objectives, goals, and purposes of the expanded property tax assistance provided under its provisions. In this regard, the bill would require the Legislative Analyst to review the effectiveness of this property tax assistance and authorize the Legislative Analyst to collect specified data from the Franchise Tax Board and specified other state governmental entities.
By expanding eligibility for property tax assistance under these provisions, thereby expanding the scope of the crime of perjury, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 The heading of Chapter 1 (commencing with Section 20501) of Part 10.5 of Division 2 of the Revenue and Taxation Code is amended to read:
CHAPTER  1. Homeowners and Renters Property Tax Assistance Law

SEC. 2.

 Section 20501 of the Revenue and Taxation Code is amended to read:

20501.
 (a) This chapter shall be known, and may be cited, as the Gonsalves-Deukmejian-Petris Property Tax Assistance Law.
(b) This section shall remain in effect only until December 1, 2025, and as of that date is repealed.

SEC. 3.

 Section 20501 is added to the Revenue and Taxation Code, to read:

20501.
 (a) This chapter shall be known and may be cited as the Gonsalves-Deukmejian-Petris Senior Citizens Property Tax Assistance Law.
(b) This section shall become operative on December 1, 2025.

SEC. 3.SEC. 4.

 Section 20505 of the Revenue and Taxation Code is amended to read:

20505.
 (a) “Claimant” means an individual who:

(a)

(1) For purposes of this chapter, was a member of the household and who was either: (1) the owner and occupier of a residential dwelling on the last day of the year designated in subdivision (b) of Section 20503, or (2) the renter of a rented residence on or before the last day of the year designated in subdivision (b) of Section 20503. An individual who qualifies as an owner-claimant may not qualify as a renter-claimant for the same year.

(b)

(2) For purposes of Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), and Chapter 3.5 (commencing with Section 20640), was a member of the household and either an owner-occupant, or a tenant stockholder occupant, or a possessory interestholder occupant, or a manufactured home owner-occupant, as the case may be, of the residential dwelling as to which postponement is claimed on the last day of the year designated in subdivision (d) of Section 20503, and who was (1) 62 years of age or older by December 31 of the fiscal year for which postponement is claimed, or (2) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code, at the time of application or on February 10 of the fiscal year for which postponement is claimed.
(b) This section shall remain in effect only until December 1, 2025, and as of that date is repealed.

SEC. 5.

 Section 20505 is added to the Revenue and Taxation Code, to read:

20505.
 (a) “Claimant” means an individual who:
(1) For purposes of this chapter, was either: (A) 62 years of age or older on the last day of the calendar year or approved fiscal year designated in subdivision (b) of Section 20503, or (B) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code, on the last day of the calendar year or approved fiscal year designated in subdivision (b) of Section 20503, who was a member of the household, and who was either: (i) the owner and occupier of a residential dwelling on the last day of the year designated in subdivision (b) of Section 20503, or (ii) the renter of a rented residence on or before the last day of the year designated in subdivision (b) of Section 20503. An individual who qualifies as an owner-claimant may not qualify as a renter-claimant for the same year.
(2) For purposes of Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), and Chapter 3.5 (commencing with Section 20640), was a member of the household and either an owner-occupant, a tenant stockholder occupant, a possessory interestholder occupant, or a manufactured home owner-occupant, as the case may be, of the residential dwelling as to which postponement is claimed on the last day of the year designated in subdivision (d) of Section 20503, and who was (A) 62 years of age or older by December 31 of the fiscal year for which postponement is claimed, or (B) blind or disabled, as defined in Section 12050 of the Welfare and Institutions Code, at the time of application or on February 10 of the fiscal year for which postponement is claimed.
(b) This section shall become operative on December 1, 2025.

SEC. 4.SEC. 6.

 Section 20514 of the Revenue and Taxation Code is repealed.

SEC. 5.SEC. 7.

 Section 20514 is added to the Revenue and Taxation Code, to read:

20514.
 (a) Except as otherwise provided in subdivision (b), the Franchise Tax Board shall not provide assistance under this chapter if a claimant’s gross household income, after allowance for actual cash expenditures that are reasonable, ordinary, and necessary to realize income, exceeds thirty thousand dollars ($30,000).
(b) With respect to assistance pursuant to this chapter for the 2021 calendar year and each calendar year thereafter, the gross household income figure that applies to assistance provided by the Franchise Tax Board during that period shall be the gross household income figure that applied to assistance provided by the Franchise Tax Board in the same period in the immediately preceding year, multiplied by an inflation adjustment factor calculated as follows:
(1) On or before February 1 of each year, the Department of Industrial Relations shall transmit to the Franchise Tax Board the percentage change in the California Consumer Price Index for all items from June of the second preceding calendar year to June of the immediately preceding calendar year, inclusive.
(2) The Franchise Tax Board shall add 100 percent to the percentage change figure that is furnished pursuant to paragraph (1) and divide the result by 100.
(3) The Franchise Tax Board shall multiply the gross household income figure that applies in the immediately preceding year by the inflation adjustment factor determined in paragraph (2), and round off the resulting product to the nearest one dollar ($1).
(c) This section shall remain in effect only until December 1, 2025, and as of that date is repealed.

SEC. 6.SEC. 8.

 Section 20543 of the Revenue and Taxation Code is repealed.

SEC. 7.SEC. 9.

 Section 20543 is added to the Revenue and Taxation Code, to read:

20543.
 (a) (1) The amount of assistance for a claimant owning their residential dwelling shall be based on the claimant’s household income for the period set forth in Section 20503.
(2) For claims filed with respect to the 2020 calendar year and each calendar year thereafter, the percentage of assistance for which each claimant owning their residential dwelling shall be eligible based on the following scale:
If the total household income (as defined
in this part) is not more than:
The percentage of tax on
the first $34,000 of full
value (as determined
for tax purposes) used
to provide assistance
is:
$7,500  ........................
139%  
 8,000  ........................
136 
 8,500  ........................
133 
 9,000  ........................
131 
 9,500  ........................
128 
10,000  ........................
125 
10,500  ........................
122 
11,000  ........................
119 
11,500  ........................
116 
12,000  ........................
113 
12,500  ........................
110 
13,000  ........................
106 
13,500  ........................
100 
14,000  ........................
94
14,500  ........................
88
15,000  ........................
83
15,500  ........................
77
16,000  ........................
71
16,500  ........................
65
17,000  ........................
59
17,500  ........................
54
18,000  ........................
49
18,500  ........................
45
19,000  ........................
41
19,500  ........................
36
20,000  ........................
32
20,500  ........................
29
21,000  ........................
26
21,500  ........................
23
22,000  ........................
20
22,500  ........................
17
23,750  ........................
15
25,000  ........................
12
26,250  ........................
10
27,500  ........................
 9
28,750  ........................
 7
30,000  ........................
 6
(b) With respect to assistance that is provided by the Franchise Tax Board pursuant to this chapter for the 2021 calendar year and each year thereafter, the household income figures that apply to assistance provided by the Franchise Tax Board during that period shall be the household income figures that applied to assistance provided by the Franchise Tax Board in the same period in the immediately preceding year, multiplied by an inflation factor calculated as follows:
(1) On or before February 1 of each year, the Department of Industrial Relations shall transmit to the Franchise Tax Board the percentage change in the California Consumer Price Index for all items from June of the second preceding calendar year to June of the immediately preceding calendar year, inclusive.
(2) The Franchise Tax Board shall add 100 percent to the percentage change figure that is furnished pursuant to paragraph (1) and divide the result by 100.
(3) The Franchise Tax Board shall multiply the immediately preceding household income figure by the inflation adjustment factor determined in paragraph (2), and round off the resulting product to the nearest one dollar ($1).
(c) This section shall remain in effect only until December 1, 2025, and as of that date is repealed.

SEC. 8.SEC. 10.

 Section 20544 of the Revenue and Taxation Code is repealed.

SEC. 9.SEC. 11.

 Section 20544 is added to the Revenue and Taxation Code, to read:

20544.
 (a) (1) The amount of assistance for a claimant renting their residence shall be based on the claimant’s household income for the time period set forth in Section 20503.
(2) For claims filed with respect to the 2020 calendar year, and each calendar year thereafter, the percentage of assistance for which each claimant renting their residence shall be eligible shall be based on the following scale:
_____
_____
The percentage of the
statutory property tax
equivalent used to
provide assistance is:
If the total household
The statutory
 income (as defined in this
property tax
 part) is not more than:
equivalent is:
$7,500  ........................
$250  ........................
139% 
 8,000  ........................
 250   ........................
136
 8,500  ........................
 250  ........................
133
 9,000  ........................
 250  ........................
131
 9,500  ........................
 250  ........................
128
10,000  ........................
 250  ........................
125
10,500  ........................
 250  ........................
122
11,000  ........................
 250  ........................
119
11,500  ........................
 250  ........................
116
12,000  ........................
 250  ........................
113
12,500  ........................
 250  ........................
110
13,000  ........................
 250  ........................
106
13,500  ........................
 250  ........................
100
14,000  ........................
 250  ........................
 94
14,500  ........................
 250  ........................
 88
15,000  ........................
 250  ........................
 83
15,500  ........................
 250  ........................
 77
16,000  ........................
 250  ........................
 71
16,500  ........................
 250  ........................
 65
17,000  ........................
 250  ........................
 59
17,500  ........................
 250  ........................
 54
18,000  ........................
 250  ........................
 49
18,500  ........................
 250  ........................
 45
19,000  ........................
 250  ........................
 41
19,500  ........................
 250  ........................
 36
20,000  ........................
 250  ........................
 32
20,500  ........................
 250  ........................
 29
21,000  ........................
 250  ........................
 26
21,500  ........................
 250  ........................
 23
22,000  ........................
 250  ........................
 20
22,500  ........................
 250  ........................
 17
23,750  ........................
 250  ........................
 15
25,000  ........................
 250  ........................
 12
26,250  ........................
 250  ........................
 10
27,500  ........................
 250  ........................
  9
28,750  ........................
 250  ........................
  7
30,000  ........................
 250  ........................
  6
(b) With respect to assistance that is provided by the Franchise Tax Board pursuant to this chapter for the 2021 calendar year and each year thereafter, the household income figures that apply to assistance provided by the Franchise Tax Board during that period shall be the household income figures that applied to assistance provided by the Franchise Tax Board in the same period in the immediately preceding year, multiplied by an inflation factor calculated as follows:
(1) On or before February 1 of each year, the Department of Industrial Relations shall transmit to the Franchise Tax Board the percentage change in the California Consumer Price Index for all items from June of the second preceding calendar year to June of the immediately preceding calendar year, inclusive.
(2) The Franchise Tax Board shall add 100 percent to the percentage change figure that is furnished pursuant to paragraph (1) and divide the result by 100.
(3) The Franchise Tax Board shall multiply the immediately preceding household income figure by the inflation adjustment factor determined in paragraph (2), and round off the resulting product to the nearest one dollar ($1).
(c) This section shall remain in effect only until December 1, 2025, and as of that date is repealed.

SEC. 12.

 The Legislature finds and declares all of the following with respect to Sections 20501 and 20505 of the Revenue and Taxation Code, as amended by this act, and Sections 20514, 20543, and 20544 of the Revenue and Taxation Code, as added by this act:
(a) The specific goals, purposes, and objectives that the property tax assistance from sales and use taxes allowed by this act will achieve are to mitigate homelessness by providing additional assistance to households with less than thirty thousand dollars ($30,000) annual income.
(b) The detailed performance indicators for the Legislature to use in determining whether the property tax assistance provided by this act meets those goals, purposes, and objectives are as follows:
(1) The estimated amount of households who qualify for the assistance.
(2) The number of households who applied for the assistance.
(3) The number of households who received the assistance.
(4) The amount of money expended by the Franchise Tax Board through the assistance program.
(c) The data collection requirements to enable the Legislature to determine whether the assistance is meeting, failing to meet, or exceeding the specific goals, purposes, and objectives described in subdivision (a) are as follows:
(1) To assist the Legislature in measuring whether the assistance met the goals, purposes, and objectives specified in subdivision (a), the Legislative Analyst shall review the effectiveness of the assistance and may request information from the Franchise Tax Board and any state governmental entity with authority relating to keeping Californians in their homes and mitigating homelessness.
(2) The Franchise Tax Board and any state governmental entity described in paragraph (1) shall provide the Legislative Analyst with any data requested by the Legislative Analyst pursuant to this subdivision.

SEC. 10.SEC. 13.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.