Bill Text: CA AB893 | 2013-2014 | Regular Session | Amended

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Bill Title: Income taxes: deductions: Mello-Roos.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB893 Detail]

Download: California-2013-AB893-Amended.html

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BILL NUMBER: AB 893	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 14, 2013

INTRODUCED BY   Assembly Member Daly

                        FEBRUARY 22, 2013

    An act to amend Section 6006.3 of the Revenue and
Taxation Code, relating to taxation.   An act to add
Sections 17239 and 24356.9 to the Revenue and Taxation Code, relating
to taxation, to take effect immediately, tax levy. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 893, as amended, Daly.  Sales and use taxes: lease:
definition.   Income taxes: deductions: Mello-Roos.
 
   The Personal Income Tax Law and the Corporation Tax Law authorize
various deductions in computing income that is subject to tax under
those laws.  
   This bill would allow a deduction, under both of those laws, of
amounts paid under the Mello-Roos Community Facilities Act of 1982.
 
   This bill would take effect immediately as a tax levy. 

   The Sales and Use Tax Law defines a "lease" for purposes of
application of that law.  
   This bill would make technical, nonsubstantive changes to that
definition. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 17239 is added to the 
 Revenue and Taxation Code   , to read:  
   17239.  For each taxable year beginning on or after January 1,
2014, there shall be allowed as a deduction the amount paid by the
taxpayer pursuant to the Mello-Roos Community Facilities Act of 1982
(Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2
of Title 5 of the Government Code). 
   SEC. 2.    Section 24356.9 is added to the  
Revenue and Taxation Code   , to read:  
   24356.9.  For each taxable year beginning on or after January 1,
2014, there shall be allowed as a deduction the amount paid by the
taxpayer pursuant to the Mello-Roos Community Facilities Act of 1982
(Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2
of Title 5 of the Government Code). 
   SEC. 3.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  
  SECTION 1.    Section 6006.3 of the Revenue and
Taxation Code is amended to read:
   6006.3.  "Lease" includes rental, hire and license. "Lease" does
not include a use of tangible personal property for less than one day
for a charge of less than twenty dollars ($20) when the privilege to
use the property is restricted to its use on the premises or at a
business location of the grantor of the privilege. If a contract
designated as a lease binds the lessee for a fixed term and the
lessee is to obtain title at the end of the term upon the completion
of the required payment, or has the option at that time to purchase
the property for a nominal amount, the contract shall be regarded as
a sale under a security agreement from its inception and not as a
lease. For a contract designated as a lease with any state or local
governmental body, or any agency or instrumentality thereof, the
lessee shall be treated as bound for a fixed term notwithstanding any
right of the lessee to terminate the contract in the event that
sufficient funds are not appropriated to pay amounts due under the
contract.