Bill Text: CA SB221 | 2023-2024 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Personal Income Tax Law: Corporation Tax Law: credits: domestic violence survivor housing.
Spectrum: Bipartisan Bill
Status: (Failed) 2024-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB221 Detail]
Download: California-2023-SB221-Introduced.html
Bill Title: Personal Income Tax Law: Corporation Tax Law: credits: domestic violence survivor housing.
Spectrum: Bipartisan Bill
Status: (Failed) 2024-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB221 Detail]
Download: California-2023-SB221-Introduced.html
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 221
| Introduced by Senator Seyarto |
January 19, 2023 |
An act to add and repeal Sections 17053.35 and 23625 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 221, as introduced, Seyarto.
Personal Income Tax Law: Corporation Tax Law: credits: domestic violence survivor housing.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would, for taxable years beginning on or after January 1, 2023, and before January 1, 2028, allow a credit against the taxes imposed by those laws in an amount equal to the difference between the fair market rental value and the amount realized in rents and other revenues from leasing qualified rental property, as defined, to qualified nonprofits, as defined, for the purpose of providing housing to survivors of domestic violence below market rates. The bill
would state it is the intent of the Legislature to comply with the additional information requirements of a bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 17053.35 is added to the Revenue and Taxation Code, to read:17053.35.
(a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed as a credit against the “net tax,” as that term is defined in Section 17039, of a taxpayer an amount equal to the qualified amount.(b) For purposes of this section, the following definitions shall apply:
(1) “Domestic violence” shall have the same definition as that term is defined in Section 6211 of the Family Code.
(2) “Qualified amount” means the difference between the fair market rental value of qualified rental property and the amount realized in rent and other revenues resulting from the leasing
of the qualified rental property to a qualified nonprofit.
(3) “Qualified nonprofit” means a nonprofit organization dedicated to assisting survivors of domestic violence by offering housing below market rates.
(4) “Qualified rental property” means real property leased by a taxpayer to a qualified nonprofit for the purpose of providing housing below market rates to survivors of domestic violence.
(c) Upon request by the Franchise Tax Board, the taxpayer shall provide substantiation of the fair market rental value of qualified rental property, as determined by either of the following methods:
(1) The fair market rental value determined by a comparative analysis prepared by an independent real estate broker. The comparative analysis shall be performed by a
qualified, licensed professional who acts within the scope of the broker’s license, who, at a minimum, meets the standards for brokers, as specified in Chapter 6 (commencing with Section 2705) of Title 10 of the California Code of Regulations, and the comparatives shall be made in accordance with Section 200.465(a) of Title 2 of the Code of Federal Regulations.
(2) The fair market rental value determined by an independent appraisal. The appraisal shall be performed by a qualified, licensed professional appraiser who, at a minimum, meets standards for appraisers as specified in Chapter 6.5 (commencing with Section 3500) of Title 10 of the California Code of Regulations.
(d) This section shall remain operative only until December 1, 2028, and as of that date is repealed.
SEC. 2.
Section 23625 is added to the Revenue and Taxation Code, to read:23625.
(a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed as a credit against the “tax,” as that term is defined in Section 26036, of a taxpayer an amount equal to the qualified amount.(b) For purposes of this section, the following definitions shall apply:
(1) “Domestic violence” shall have the same definition as that term is defined in Section 6211 of the Family Code.
(2) “Qualified amount” means the difference between the fair market rental value of qualified rental property and the amount realized in rent and other revenues resulting from the leasing of the
qualified rental property to a qualified nonprofit.
(3) “Qualified nonprofit” means a nonprofit organization dedicated to assisting survivors of domestic violence by offering housing at below market rates.
(4) “Qualified rental property” means real property leased by a taxpayer to a qualified nonprofit for the purpose of providing housing at below market rates to survivors of domestic violence.
(c) Upon request by the Franchise Tax Board, the taxpayer shall provide substantiation of the fair market rental value of qualified rental property, as determined by either of the following methods:
(1) The fair market rental value determined by a comparative analysis prepared by an independent real estate broker. The comparative analysis shall be performed by a
qualified, licensed professional who acts within the scope of the broker’s license, who, at a minimum, meets the standards for brokers, as specified in Chapter 6 (commencing with Section 2705) of Title 10 of the California Code of Regulations, and the comparatives shall be made in accordance with Section 200.465(a) of Title 2 of the Code of Federal Regulations.
(2) The fair market rental value determined by an independent appraisal. The appraisal shall be performed by a qualified, licensed professional appraiser who, at a minimum, meets standards for appraisers as specified in Chapter 6.5 (commencing with Section 3500) of Title 10 of the California Code of Regulations.
(d) This section shall remain operative only until December 1, 2028, and as of that date is repealed.
