Bill Text: CA SB206 | 2009-2010 | Regular Session | Amended

California Senate Bill 206 (Prior Session Legislation)

Bill Title: Income tax credit: principal residence.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2010-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB206 Detail]

Download: California-2009-SB206-Amended.html

BILL NUMBER: SB 206	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 9, 2009
	AMENDED IN SENATE  JULY 2, 2009
	AMENDED IN SENATE  JULY 1, 2009
	AMENDED IN SENATE  JUNE 9, 2009
	AMENDED IN SENATE  MAY 26, 2009
	AMENDED IN SENATE  APRIL 28, 2009

INTRODUCED BY   Senator Dutton
    (   Principal coauthor:   Assembly Member
  Charles Calderon   ) 

                        FEBRUARY 23, 2009

   An act to add and repeal Section 17059.5 of the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 206, as amended, Dutton. Income tax credit: principal
residence.
   The Personal Income Tax Law authorizes various credits against the
taxes imposed by that law.
   This bill would allow a credit to a qualified taxpayer, as
defined, who purchases a qualified principal residence, as defined,
during a specified period, in an amount equal to 10% of the purchase
price, not to exceed $8,000, as provided. The bill would limit the
total amount of credits to specified aggregate amounts per fiscal
year, and provide that the General Fund shall be paid an amount equal
to the credits with specified funds from the Neighborhood
Stabilization Program 2 Funding as provided.
   This bill would take effect immediately as a tax levy.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Targeted neighborhoods in California must be revitalized to
restore the state's economy, housing market, and  the 
social networks of the state's communities.
   (b) The state must act to arrest the decline of neighborhoods that
have been negatively affected by foreclosed and abandoned
residential properties.
   (c) The state must invest in affordable housing opportunities
presented by the increasing inventory of foreclosed and abandoned
residential properties throughout the state.
  SEC. 2.  Section 17059.5 is added to the Revenue and Taxation Code,
to read:
   17059.5.  (a) (1) In the case of a qualified taxpayer who
purchases a qualified principal residence on or after the date that
the act adding this section takes effect and before the date that is
the same day of the 12th month that follows the effective date of
this section, there shall be allowed as a credit against the "net
tax," as defined in Section 17039, an amount equal to 10 percent of
the purchase price of the qualified principal residence, not to
exceed eight thousand dollars ($8,000). The credit shall be allowed
for the taxable year in which the qualified principal residence is
purchased.
   (2) The credit under this section shall be allowed for the
purchase of only one qualified principal residence with respect to
any qualified taxpayer.
   (b) (1) For the purposes of this section, "qualified principal
residence" means a single-family residence, whether detached or
attached, that has been foreclosed upon, where the residence has gone
through the foreclosure process and is now in the possession of the
lender, and that is purchased to be the principal residence of the
qualified taxpayer for a minimum of three years and is eligible for
the homeowner's exemption under Section 218.
   (2) For the purposes of this section "qualified taxpayer" means
the buyer does not have adjusted gross income over ninety-five
thousand dollars ($95,000) or one hundred seventy thousand dollars
($170,000) for joint filers.
   (3) If the qualified taxpayer does not occupy the qualified
principal residence as his or her principal residence for at least
three years immediately following the purchase, the credit shall be
disallowed, and the qualified taxpayer shall be liable for any
underpayments attributable to the disallowance of the credit.
   (c) The qualified taxpayer shall claim the credit on a timely
filed original return.
   (d) The Franchise Tax Board may prescribe rules, guidelines, or
procedures necessary or appropriate to carry out the purposes of this
section. Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code shall not apply to any
rule, guideline, or procedure prescribed by the Franchise Tax Board
pursuant to this section.
   (e) The credit allowed by this section is not a business credit
within the meaning of Section 17039.2.
   (f) The total amount of credits that may be allowed pursuant to
this section shall not exceed one hundred thirty million dollars
($130,000,000) for the 2009-10 fiscal year, and one hundred million
dollars ($100,000,000) for the 2010-11 fiscal year.
   (g) The General Fund shall be paid an amount equal to the amount
of tax credits allowed pursuant to this section with funds from the
Neighborhood Stabilization Program 2 Funds administered by the
Department of Housing and Community Development, to the extent
federal law authorizes the use of those funds for this purpose.
   (h) This section shall remain in effect only until December 1,
2012, and as of that date is repealed.
  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.