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AB-399 Taxation: renters’ credit.(2019-2020)

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Date Published: 03/21/2019 09:00 PM
AB399:v98#DOCUMENT

Amended  IN  Assembly  March 21, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 399

Introduced by Assembly Member Brough

February 06, 2019

An act to amend Section 43152.10 of the Revenue and Taxation Code, relating to taxation. 17053.5 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 399, as amended, Brough. Taxation: Hazardous Substances Tax Law. renters’ credit.
The Personal Income Tax Law authorizes various credits against the taxes imposed by that law, including a credit for qualified renters in the amount of $120 for spouses filing joint returns, heads of household, and surviving spouses if adjusted gross income is $50,000, as adjusted, or less, and in the amount of $60 for other individuals if adjusted gross income is $25,000, as adjusted, or less. Existing law requires the Franchise Tax Board to annually adjust for inflation these adjusted gross income amounts. For 2018, the adjusted gross income limit is $83,282 and $41,641, respectively.
This bill would, for each taxable year beginning on and after January 1, 2019, and before January 1, 2024, contingent upon a specified appropriation, increase this credit for a qualified renter to $240 for spouses filing joint returns, heads of household, and surviving spouses if adjusted gross income is $100,000 or less, and to an amount equal to $120 for other individuals if adjusted gross income is $50,000 or less. The bill would require the Franchise Tax Board to annually adjust the increased adjusted gross income amount for inflation.
This bill would take effect immediately as a tax levy.

Existing law requires that certain fees, including, among others, the hazardous waste disposal fees and hazardous waste facility and generator fees, be administered and collected by the California Department of Tax and Fee Administration in accordance with the Hazardous Substances Tax Law. Existing law requires a feepayer, within 30 days of the date of assessment, to deliver a remittance of the amount of those assessed fees to the office of the department.

This bill would require a feepayer to deliver that remittance to the office of the department within 45 days, instead of 30 days, of the date of assessment.

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

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


SECTION 1.

 Section 17053.5 of the Revenue and Taxation Code is amended to read:

17053.5.
 (a) (1) For a qualified renter, there shall be allowed a credit against his or her the qualified renter’s “net tax,” as defined in Section 17039. The amount of the credit shall be as follows:
(A) Except as otherwise provided in subparagraph (B):

(A)

(i) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, the credit shall be equal to one hundred twenty dollars ($120) if adjusted gross income is fifty thousand dollars ($50,000) or less.

(B)

(ii) For other individuals, the credit shall be equal to sixty dollars ($60) if adjusted gross income is twenty-five thousand dollars ($25,000) or less.
(B) If any budget measure specifically appropriates moneys to the Franchise Tax Board for the costs associated with this subparagraph for any taxable year beginning on or after January 1, 2019, and before January 1, 2024, subparagraph (A) shall not be operative and this subparagraph shall be operative for that taxable year:
(i) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, the credit shall be equal to two hundred forty dollars ($240) if adjusted gross income is one hundred thousand dollars ($100,000) or less.
(ii) For other individuals, the credit shall be equal to one hundred twenty dollars ($120) if adjusted gross income is fifty thousand dollars ($50,000) or less.
(2) Except as provided in subdivision (b), spouses shall receive but only one credit under this section. If the spouses file separate returns, the credit may be taken by either or equally divided between them, except as follows:
(A) If one spouse was a resident for the entire taxable year and the other spouse was a nonresident for part or all of the taxable year, the resident spouse shall be allowed one-half the credit allowed to married persons and the nonresident spouse shall be permitted one-half the credit allowed to married persons, prorated as provided in subdivision (e).
(B) If both spouses were nonresidents for part of the taxable year, the credit allowed to married persons shall be divided equally between them subject to the proration provided in subdivision (e).
(b) For spouses, if each spouse maintained a separate place of residence and resided in this state during the entire taxable year, each spouse will be allowed one-half the full credit allowed to married persons provided in subdivision (a).
(c) For purposes of this section, a “qualified renter” means an individual who satisfies both of the following:
(1) Was a resident of this state, as defined in Section 17014.
(2) Rented and occupied premises in this state which constituted his or her the individual’s principal place of residence during at least 50 percent of the taxable year.
(d) “Qualified renter” does not include any of the following:
(1) An individual who for more than 50 percent of the taxable year rented and occupied premises that were exempt from property taxes, except that an individual, otherwise qualified, is deemed a qualified renter if he or she the individual or his or her the individual’s landlord pays possessory interest taxes, or the owner of those premises makes payments in lieu of property taxes that are substantially equivalent to property taxes paid on properties of comparable market value.
(2) An individual whose principal place of residence for more than 50 percent of the taxable year is with another any other person who claimed that individual as a dependent for income tax purposes.
(3) An individual who has been granted or whose spouse has been granted the homeowners’ property tax exemption during the taxable year. This paragraph does not apply to an individual whose spouse has been granted the homeowners’ property tax exemption if each spouse maintained a separate residence for the entire taxable year.
(e) An otherwise qualified renter who is a nonresident for any portion of the taxable year shall claim the credits set forth in subdivision (a) at the rate of one-twelfth of those credits for each full month that individual resided within this state during the taxable year.
(f) A person claiming the credit provided in this section shall, as part of that claim, and under penalty of perjury, furnish that information as the Franchise Tax Board prescribes on a form supplied by the board.
(g) The credit provided in this section shall be claimed on returns in the form as the Franchise Tax Board may from time to time prescribe.
(h) For purposes of this section, “premises” means a house or a dwelling unit used to provide living accommodations in a building or structure and the land incidental thereto, but does not include land only, unless the dwelling unit is a mobilehome. The credit is not allowed for any taxable year for the rental of land upon which a mobilehome is located if the mobilehome has been granted a homeowners’ exemption under Section 218 in that year.
(i) This section shall become operative on January 1, 1998, and applies to any taxable year beginning on or after January 1, 1998.

(j)For each taxable year beginning on or after January 1, 1999, the Franchise Tax Board shall recompute the adjusted gross income amounts set forth in subdivision (a). The computation shall be made as follows:

(j) (1) If subparagraph (A) of paragraph (1) of subdivision (a) is operative, for each taxable year beginning on or after January 1, 1999, the Franchise Tax Board shall recompute the adjusted gross income amounts set forth in subparagraph (A) of paragraph (1) of subdivision (a).
(2) If subparagraph (B) of paragraph (1) of subdivision (a) is operative for a taxable year:
(A) For the next following taxable year the Franchise Tax Board shall recompute the adjusted gross income amounts set forth in subparagraph (B) of paragraph (1) of subdivision (a).
(B) For the next following taxable year for which subdivision (B) of paragraph (1) of subdivision (a) is not operative, the amounts set forth in subparagraph (A) of paragraph (1) of subdivision (a) shall apply, as adjusted as if they had been applied for each preceding taxable year and subparagraph (B) had never been operative. For each following taxable year, the Franchise Tax Board shall recompute the adjusted gross income amounts.
(3) The recomputation shall be made as follows:

(1)

(A) The Department of Industrial Relations shall transmit annually to the Franchise Tax Board the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current year, no later than August 1 of the current calendar year.

(2)

(B) The Franchise Tax Board shall compute an inflation adjustment factor by adding 100 percent to the portion of the percentage change figure which is furnished pursuant to paragraph (1) subparagraph (A) and dividing the result by 100.

(3)

(C) The Franchise Tax Board shall multiply the amount in subparagraph (B) of paragraph (1) of subdivision (d) for the preceding taxable year by the inflation adjustment factor determined in paragraph (2), subparagraph (B), and round off the resulting products to the nearest one dollar ($1).

(4)

(D) (i) In computing the amounts pursuant to this subdivision, the amounts provided in clause (i) of subparagraph (A) of paragraph (1) of subdivision (a) shall be twice the amount provided in clause (ii) of subparagraph (B) (A) of paragraph (1) of subdivision (a).
(ii) In computing the amounts pursuant to this subdivision, the amounts provided in clause (i) of subparagraph (B) of paragraph (1) of subdivision (a) shall be twice the amount provided in clause (ii) of subparagraph (B) of paragraph (1) of subdivision (a).

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.
SECTION 1.Section 43152.10 of the Revenue and Taxation Code is amended to read:
43152.10.

The fees collected and administered under Sections 43053 and 43054 are due and payable within 45 days after the date of assessment and the feepayer shall deliver a remittance of the amount of the assessed fee to the office of the California Department of Tax and Fee Administration within that 45-day period.