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AB-153 Personal income taxes: deduction: students.(2019-2020)



Current Version: 03/05/19 - Amended Assembly         Compare Versions information image


AB153:v98#DOCUMENT

Amended  IN  Assembly  March 05, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 153


Introduced by Assembly Member Voepel
(Coauthor: Assembly Member Mathis)
(Coauthor: Senator Portantino)

January 07, 2019


An act to add and repeal Section 17205 to of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 153, as amended, Voepel. Personal income taxes: deduction: students.
The Personal Income Tax Law allows various deductions in computing the income that is subject to the tax imposed by that law, including, in conformity with federal income tax law, a deduction for amounts paid, not to exceed $50 per month, by a taxpayer to maintain an individual, who is not a dependent or a relative, as a member of the taxpayer’s household during the period that the individual is a full-time pupil or student in elementary or secondary grades at specified educational organizations. Existing law does not allow this deduction where the taxpayer receives compensation or reimbursement for maintaining the individual, as provided.
This bill, for each taxable year beginning on and after January 1, 2020, and before January 1, 2025, would increase the authorized deduction, not to exceed $500 per month, for individuals described above whose permanent place of residence is not the United States. States and would allow the deduction to taxpayers who receive compensation or reimbursement for maintaining that individual.
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 17205 is added to the Revenue and Taxation Code, to read:

17205.
 (a) For taxable years beginning on or after January 1, 2020, and before January 1, 2025, Section 170(g)(2)(A) 170(g) of the Internal Revenue Code, relating to amounts paid to maintain certain students as members of taxpayer’s household, is modified by substituting “$500” in lieu of “$50” when the student’s permanent place of residence is not the United States. as follows:
(1) Section 170(g)(2)(A) of the Internal Revenue Code, relating to amount, is modified by substituting “$500” in lieu of “$50” when the student’s permanent place of residence is not the United States.
(2) Section 170(g)(2)(B) of the Internal Revenue Code, relating to compensation or reimbursement, shall not apply when the student’s permanent place of residence is not the United States.
(b) This section shall remain in effect only until December 1, 2025, and as of that date is repealed.

SEC. 2.

 (a) It is the intent of the Legislature to apply the requirements of Section 41 of the Revenue and Taxation Code to this act.
(b) With respect to Section 17205 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares as follows:
(1) The goal of this act is to relieve the tax burden on families for receiving extra income because of hosting a foreign exchange student and allow more families to participate in this program without the worry of losing their own money.
(2) The effectiveness of the revised deduction shall be measured as follows: the Franchise Tax Board shall report on its internet website the number of taxpayers who claim the revised deduction. The Legislature shall use this information to determine whether the deduction results in more families hosting foreign exchange students.

SEC. 2.SEC. 3.

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