Today's Law As Amended


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



As Amends the Law Today


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.