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AB-385 Seniors’ tax assistance: full value: property tax equivalent.(2001-2002)

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Amended  IN  Assembly  March 26, 2001
Amended  IN  Assembly  April 16, 2001

CALIFORNIA LEGISLATURE— 2001–2002 REGULAR SESSION

Assembly Bill
No. 385

Introduced  by  Assembly Member Strickland
 (Coauthor(s): Assembly Member Ashburn, Bill Campbell, Cox, Hollingsworth, La Suer, Leach, Robert Pacheco, Runner, Wyman)
 (Coauthor(s): Senator Haynes, Morrow)

February 20, 2001

An act to amend Sections 20542, 20543, and 20544 of the Revenue and Taxation Code, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


AB 385, as amended, Strickland. Seniors’ tax assistance: full value: property tax equivalent.
The Gonsalves-Deukmejian-Petris Senior Citizens Property Tax Assistance Law provides for payment of assistance by the Franchise Tax Board to claimants, whether those claimants own or rent their residence, in accordance with schedules that reduce the amount of assistance provided as the amount of a claimant’s household income increases along a specified scale of household income amounts. The amount of assistance for a claimant owning his or her residential dwelling is a specified percentage, based on household income, of tax on the first $34,000 of full value. The amount of assistance for a claimant renting his or her residence is a specified percentage, based on household income, of the statutory property tax equivalent of $250. Existing law also provides a one-time 150% increase in property tax assistance payments for low-income senior citizens and disabled individuals for the 2000–01 fiscal year, as provided.
This bill would increase the $34,000 amount to $47,600, and would increase the statutory property tax equivalent amount to $350, as provided.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 20542 of the Revenue and Taxation Code is amended to read:

20542.
 (a) The Franchise Tax Board, pursuant to the provisions of Article 3 (commencing with Section 20561), of this chapter, shall provide assistance to the claimant based on a percentage of the property tax accrued and paid by the claimant on the residential dwelling as provided in Section 20543 or the statutory property tax equivalent pursuant to Section 20544. In case of an owner-claimant, the assistance shall be equal to the applicable percentage of property taxes paid on the full value of the residential dwelling up to, and including, forty-seven thousand six hundred dollars ($47,600). No assistance shall be allowed for property taxes paid on that portion of full value of a residential dwelling exceeding forty-seven thousand six hundred dollars ($47,600). No assistance shall be provided if the amount of the assistance claim is five dollars ($5) or less.
(b) For purposes of allowing the assistance provided for by this section:
(1) (A) Only one owner-claimant from one household each year shall be entitled to assistance under this chapter. When two or more individuals of a household are able to meet the qualifications for an owner-claimant, they may determine who the owner-claimant shall be. If they are unable to agree, the matter shall be referred to the Franchise Tax Board and its decision shall be final.
(B) When two or more individuals pay rent for the same premises and each individual meets the qualifications for a renter-claimant, each qualified individual shall be entitled to assistance under this part.
For the purposes of this subparagraph, a husband and wife residing in the same premises shall be presumed to be one renter.
(2) Except as provided in paragraph (3), the right to file a claim shall be personal to the claimant and shall not survive his or her death; however, when a claimant dies after having filed a timely claim, the amount thereof may be disbursed to the surviving spouse and, if no surviving spouse, to any other member of the household who is a qualified claimant. If there is no surviving spouse or otherwise qualified claimant, the claim shall be disbursed to any other member of the household. In the event two or more individuals qualify for payment as either an otherwise qualified claimant or a member of the household, they may determine which of them will be paid. If they are unable to agree, the matter shall be referred to the Franchise Tax Board and its decision shall be final.
(3) If, after January 1 of the property tax fiscal year for which a claim may be filed, a claimant dies without filing a timely claim, a claim on behalf of that claimant may be filed by the surviving spouse within the filing period prescribed in subdivision (a) or (b) of Section 20563.
(4) If an individual postponed taxes for any given property tax fiscal year under Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with Section 20640), then any claim for assistance under this chapter for the same property tax fiscal year shall be filed by that individual (assuming all other eligibility requirements in this chapter are satisfied) and not an otherwise qualified member of the individual’s household.

SEC. 2.

 Section 20543 of the Revenue and Taxation Code is amended to read:

20543.
 (a) (1) The amount of assistance for a claimant owning his or her residential dwelling shall be based on claimant’s household income for the period set forth in Section 20503.
(2) Except as provided in paragraph (3), the percentage of assistance for which each claimant owning his or her residential dwelling shall be eligible shall be 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 $47,600 of full value (as determined for tax purposes) used to provide assistance is:
$3,300 ........................
96%
 3,520 ........................
94
 3,740 ........................
92
 3,960 ........................
90
 4,180 ........................
88
 4,400 ........................
86
 4,620 ........................
84
 4,840 ........................
82
 5,060 ........................
80
 5,280 ........................
78
 5,500 ........................
76
 5,720 ........................
73
 5,940 ........................
69
 6,160 ........................
65
 6,380 ........................
61
 6,600 ........................
57
 6,820 ........................
53
 7,040 ........................
49
 7,260 ........................
45
 7,480 ........................
41
 7,700 ........................
37
 7,920 ........................
34
 8,140 ........................
31
 8,360 ........................
28
 8,580 ........................
25
 8,800 ........................
22
 9,020 ........................
20
 9,240 ........................
18
 9,460 ........................
16
 9,680 ........................
14
 9,900 ........................
12
10,450 ........................
10
11,000 ........................
 8
11,550 ........................
 7
12,100 ........................
 6
12,650 ........................
 5
13,200 ........................
 4
(3) For claims filed with respect to the 2000 calendar year, the percentage of assistance for which each claimant owning his or her residential dwelling shall be eligible shall be 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:
$8,498 ........................
240%
 9,065 ........................
235
 9,631 ........................
230
10,198 ........................
225
10,765 ........................
220
11,331 ........................
215
11,897 ........................
210
12,464 ........................
205
13,031 ........................
200
13,598 ........................
195
14,164 ........................
190
14,730 ........................
183
15,297 ........................
173
15,864 ........................
163
16,430 ........................
153
16,997 ........................
143
17,563 ........................
133
18,129 ........................
123
18,697 ........................
113
19,263 ........................
103
19,830 ........................
93 
20,396 ........................
85 
20,962 ........................
78 
21,530 ........................
70 
22,096 ........................
63 
22,662 ........................
55 
23,229 ........................
50 
23,795 ........................
45 
24,362 ........................
40 
24,929 ........................
35 
25,495 ........................
30 
26,912 ........................
25 
28,328 ........................
20 
29,745 ........................
18 
31,161 ........................
15 
32,578 ........................
13 
33,993 ........................
10 
(b) (1) With respect to assistance that is provided by the Franchise Tax Board pursuant to this chapter for the 1999 or 2001 calendar year, the household income figures set forth in paragraph (2) of subdivision (a) shall be multiplied by a factor of 2.51.
(2) With respect to assistance that is provided by the Franchise Tax Board pursuant to this chapter for the 2001 2002 calendar year, the household income figures set forth in paragraph (2) of subdivision (a) shall be multiplied by a factor of 3.03.
(c) With respect to assistance that is provided by the Franchise Tax Board pursuant to this chapter for the 2002 2003 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.
(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).

SEC. 3.

 Section 20544 of the Revenue and Taxation Code is amended to read:

20544.
 (a) (1) The amount of assistance for a claimant renting his or her residence shall be based on the claimant’s household income for the time period set forth in Section 20503.
(2) Except as provided in paragraph (3), the percentage of assistance for which each claimant renting his or her residence shall be eligible shall be based on the following scale:
_____
_____
The percentage of the
If the total household
The statutory
 statutory property tax
 income (as defined in this
property tax
 equivalent used to
 part) is not more than:
equivalent is:
 provide assistance is:
$3,300 ........................
$350 ........................
96%
 3,520 ........................
 350 ........................
94
 3,740 ........................
 350 ........................
92
 3,960 ........................
 350 ........................
90
 4,180 ........................
 350 ........................
88
 4,400 ........................
 350 ........................
86
 4,620 ........................
 350 ........................
84
 4,840 ........................
 350 ........................
82
 5,060 ........................
 350 ........................
80
 5,280 ........................
 350 ........................
78
 5,500 ........................
 350 ........................
76
 5,720 ........................
 350 ........................
73
 5,940 ........................
 350 ........................
69
 6,160 ........................
 350 ........................
65
 6,380 ........................
 350 ........................
61
 6,600 ........................
 350 ........................
57
 6,820 ........................
 350 ........................
53
 7,040 ........................
 350 ........................
49
 7,260 ........................
 350 ........................
45
 7,480 ........................
 350 ........................
41
 7,700 ........................
 350 ........................
37
 7,920 ........................
 350 ........................
34
 8,140 ........................
 350 ........................
31
 8,360 ........................
 350 ........................
28
 8,580 ........................
 350 ........................
25
 8,800 ........................
 350 ........................
22
 9,020 ........................
 350 ........................
20
 9,240 ........................
 350 ........................
18
 9,460 ........................
 350 ........................
16
 9,680 ........................
 350 ........................
14
 9,900 ........................
 350 ........................
12
10,450 ........................
 350 ........................
10
11,000 ........................
 350 ........................
8
11,550 ........................
 350 ........................
7
12,100 ........................
 350 ........................
6
12,600 ........................
 350 ........................
5
13,200 ........................
 350 ........................
4
(3) For claims filed with respect to the 2000 calendar year, the percentage of assistance for which each claimant renting his or her residence shall be eligible shall be based on the following scale:
_____
_____
The percentage of the
If the total household
The statutory
 statutory property tax
 income (as defined in this
property tax
 equivalent used to
 part) is not more than:
equivalent is:
 provide assistance is:
$8,498 ........................
$625 ........................
96%
 9,065 ........................
 625 ........................
94
 9,631 ........................
 625 ........................
92
10,198 ........................
 625 ........................
90
10,765 ........................
 625 ........................
88
11,331 ........................
 625 ........................
86
11,897 ........................
 625 ........................
84
12,464 ........................
 625 ........................
82
13,031 ........................
 625 ........................
80
13,598 ........................
 625 ........................
78
14,164 ........................
 625 ........................
76
14,730 ........................
 625 ........................
73
15,297 ........................
 625 ........................
69
15,864 ........................
 625 ........................
65
16,430 ........................
 625 ........................
61
16,997 ........................
 625 ........................
57
17,563 ........................
 625 ........................
53
18,219 ........................
 625 ........................
49
18,697 ........................
 625 ........................
45
19,263 ........................
 625 ........................
41
19,830 ........................
 625 ........................
37
20,396 ........................
 625 ........................
34
20,962 ........................
 625 ........................
31
21,530 ........................
 625 ........................
28
22,096 ........................
 625 ........................
25
22,662 ........................
 625 ........................
22
23,229 ........................
 625 ........................
20
23,795 ........................
 625 ........................
18
24,362 ........................
 625 ........................
16
24,929 ........................
 625 ........................
14
25,495 ........................
 625 ........................
12
26,912 ........................
 625 ........................
10
28,328 ........................
 625 ........................
8
29,745 ........................
 625 ........................
7
31,161 ........................
 625 ........................
6
32,578 ........................
 625 ........................
5
33,993 ........................
 625 ........................
4
(b) (1) With respect to assistance that is provided by the Franchise Tax Board pursuant to this chapter for the 1999 or 2001 calendar year, the household income figures set forth in paragraph (2) of subdivision (a) shall be multiplied by a factor of 2.51.
(2) With respect to assistance that is provided by the Franchise Tax Board pursuant to this chapter for the 2001 2002 calendar year, the household income figures set forth in paragraph (2) of subdivision (a) shall be multiplied by a factor of 3.03.
(c) With respect to assistance that is provided by the Franchise Tax Board pursuant to this chapter for the 2002 2003 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.
(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).