California AB 1100: Taxation: homeowners' exemption and renters' credit.

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 |Add To My Favorites | Version: 05/18/17 - Amended Assembly
 02/17/17 - Introduced

 AB-1100 Taxation: homeowners’ exemption and renters’ credit.(2017-2018)

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 Date Published: 05/18/2017 09:00 PM

AB1100:v98#DOCUMENTBill Start

 Amended
 IN 
 Assembly
 May 18, 2017

 CALIFORNIA LEGISLATURE—
 2017–2018 REGULAR SESSION

 Assembly Bill

No. 1100

Introduced by Assembly Members Chen and Harper
(Coauthors: Assembly Members Travis Allen, Brough, Lackey, Mayes, Steinorth, Waldron, Chávez, Cunningham, Gallagher, and Mathis)
(Coauthors: Senators Vidak, Wilk, Berryhill, and Morrell)

February 17, 2017

 An act to amend Sections 218 and 17053.5 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. 

LEGISLATIVE COUNSEL'S DIGEST

AB 1100, as amended, Chen.
 Taxation: homeowners’ exemption and renters’ credit.

(1) Existing property tax law provides, pursuant to the authority of a specified provision of the California Constitution, for a homeowners’ exemption in the amount of $7,000 of the full value of a “dwelling,” as defined, and authorizes the Legislature to increase this exemption.

This bill, beginning with the lien date for the 2018–19 fiscal year, contingent upon a specified appropriation, would increase the homeowners’ exemption from $7,000 to $25,000 of the full value of a dwelling. This bill would also require, for the 2019–20 fiscal year and for each fiscal year thereafter, the county assessor to adjust the amount of the homeowners’ exemption by the percentage change in the House Price Index for California for
 the first 3 quarters of the prior calendar year, as specified.

(2) The California Constitution requires the Legislature, whenever it increases the homeowners’ property tax exemption, to provide a comparable increase in benefits to qualified renters. 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 married couples spouses filing joint returns, heads of household, and surviving spouses if adjusted gross income is $50,000 or less, and in the amount of $60 for other individuals if adjusted gross income is $25,000 or less. Existing law requires the Franchise Tax Board to annually adjust for inflation these adjusted gross income amounts.

This bill, for taxable years each taxable year beginning on and after January 1, 2018, contingent upon a specified appropriation, would increase this credit for a qualified renter to $428 for married couples spouses filing joint returns, heads of household, and surviving spouses if adjusted gross income is $50,000 or less, as adjusted for inflation, and to an amount equal to $214 for other individuals if adjusted gross income is $25,000 or less, as adjusted for inflation. The bill would
 also require, for taxable years beginning on or after January 1, 2019, the Franchise Tax Board to annually adjust for inflation, based upon the California Consumer Price Index, the amount of these credits. The bill would also make technical, nonsubstantive changes to the renters’ credit.

(3) Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.

This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies under those provisions for property tax revenues lost by them pursuant to the bill.

(4) This
 bill would take effect immediately as a tax levy.

Digest Key

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

Bill Text

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

SECTION 1.

 Section 218 of the Revenue and Taxation Code is amended to read:

218.

 (a) The homeowners’ property tax exemption is in the amount of the assessed value of the dwelling specified in this section, as authorized by subdivision (k) of Section 3 of Article XIII of the Constitution. That exemption is in the following amounts:

(1) Seven Except as otherwise provided in paragraph (2), seven thousand dollars ($7,000) of the full value of the
 dwelling through the 2017–18 fiscal year. dwelling.

(2) (A) Beginning If any budget measure specifica