Bill Text: CA AB668 | 2021-2022 | Regular Session | Amended

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Bill Title: Personal income taxes: exclusion: forgiven student loan debt.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2022-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB668 Detail]

Download: California-2021-AB668-Amended.html

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Amended  IN  Assembly  March 25, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill

No. 668

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Introduced by Assembly Member Petrie-Norris

February 12, 2021

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An act to amend Section 1628 17132.11 of the Revenue and Taxation Code, relating to taxation. taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL'S DIGEST

AB 668, as amended, Petrie-Norris. Property taxation: assessment appeals boards. Personal income taxes: exclusion: forgiven student loan debt.

The Personal Income Tax Law provides various exclusions from gross income in determining tax liability, including an exclusion for the amount of student loan indebtedness repaid or canceled pursuant to specified federal law, relating to repayment plans.

Existing federal law, the American Rescue Plan Act of 2021, excludes from gross income for purposes of federal income taxes any amount that would otherwise be includible in gross income by reason of the discharge after December 31, 2020, and before January 1, 2026, of specified student loans.

This bill would apply that provision of the American Rescue Plan Act of 2021 to the Personal Income Tax Law.

This bill would take effect immediately as a tax levy.

Existing property tax law authorizes the board of supervisors of any county to create assessment appeals boards for the county to equalize the valuation of taxable property within the county for purposes of taxation, as provided. Existing law requires the clerk of the board of supervisors to be the clerk of the assessment appeals board and perform the same duties as the clerk is required to perform in connection with the proceedings of the county board of equalization.

This bill would make nonsubstantive changes to those provisions.

Digest Key

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

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Bill Text

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

SECTION 1.

 Section 17132.11 of the Revenue and Taxation Code is amended to read:

17132.11.

 (a) For taxable years beginning on or after January 1, 2014, gross income shall not include any loan amount repaid by the United States Secretary of Education or canceled pursuant to Section 1098e of Title 20 of the United States Code relating to income-based repayment.

(b) For taxable years beginning on or after January 1, 2017, and before January 1, 2022, gross income shall not include any loan amount repaid by the United States Secretary of Education or canceled pursuant to Section 1087e(e) of Title 20 of the United States Code relating to income-contingent repayment.

(c) Section 9675 of the American Rescue Plan Act of 2021 (Public Law 117-2) shall apply.

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 1628 of the Revenue and Taxation Code is amended to read:

1628.

The clerk of the board of supervisors shall be clerk of the assessment appeals boards and keep a record of their proceedings. The clerk shall perform the same duties in connection with their proceedings as the clerk is required by law to perform in connection with the proceedings of the county board of equalization.