Bill Text: CA SB30 | 2013-2014 | Regular Session | Amended

---

Bill Title: Taxation: cancellation of indebtedness: mortgage debt forgiveness.

Spectrum: Slight Partisan Bill (Democrat 6-3)

Status: (Engrossed - Dead) 2013-08-30 - Set, second hearing. Held in committee and under submission. [SB30 Detail]

Download: California-2013-SB30-Amended.html

---

BILL NUMBER: SB 30	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 13, 2013
	AMENDED IN SENATE  MAY 30, 2013
	AMENDED IN SENATE  MAY 28, 2013
	AMENDED IN SENATE  MAY 28, 2013
	AMENDED IN SENATE  MARCH 6, 2013

INTRODUCED BY   Senator Calderon
   (Principal coauthor: Senator Anderson)
   (Coauthors: Senators Block, Correa, Evans, Fuller, Lieu, and
Price)
   (Coauthor: Assembly Member Harkey)

                        DECEMBER 3, 2012

   An act to amend Section 17144.5 of the Revenue and Taxation Code,
relating to taxation, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 30, as amended, Calderon. Taxation: cancellation of
indebtedness: mortgage debt forgiveness.
   The Personal Income Tax Law conforms to specified provisions of
the federal Mortgage Forgiveness Debt Relief Act of 2007, relating to
the exclusion of the discharge of qualified principal residence
indebtedness, as defined, from a taxpayer's income if that debt is
discharged after January 1, 2007, and before January 1, 2010, as
provided. The federal Emergency Economic Stabilization Act of 2008
extended the operation of those provisions to debt that is discharged
before January 1, 2013.
   This bill would extend the operation of the exclusion of the
discharge of qualified principal residence indebtedness to debt that
is discharged on or after January 1, 2013, and before January 1,
2014. The bill would become operative only if SB 391 is enacted and
takes effect.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 17144.5 of the Revenue and Taxation Code is
amended to read:
   17144.5.  (a) Section 108(a)(1)(E) of the Internal Revenue Code is
modified  as follows:   to provide that the
amount excluded from gross income shall not exceed $500,000 ($250,000
in the case of a married individual filing a separate return). 

   (1) To provide that the amount excluded from gross income shall
not exceed $500,000 ($250,000 in the case of a married individual
filing a separate return).  
   (2) By substituting the phrase "January 1, 2014" for the phrase
"January 1, 2013" contained therein. 
   (b) Section 108(h)(2) of the Internal Revenue Code, is modified by
substituting the phrase "(within the meaning of section 163(h)(3)
(B), applied by substituting '$800,000 ($400,000' for '$1,000,000
($500,000' in clause (ii) thereof)" for the phrase "(within the
meaning of section 163(h)(3)(B), applied by substituting '$2,000,000
($1,000,000' for '$1,000,000 ($500,000' in clause (ii) thereof)"
contained therein. 
   (c) The amendments made by Section 202 of the American Taxpayer
Relief Act of 2012 (Public Law 112-240) to Section 108 of the
Internal Revenue Code shall apply.  
   (c) 
    (d)  This section shall apply to discharges of
indebtedness occurring on or after January 1, 2007, and,
notwithstanding any other law to the contrary, no penalties or
interest shall be due with respect to the discharge of qualified
principal residence indebtedness during the 2007 or 2009 taxable year
regardless of whether or not the taxpayer reports the discharge on
his or her return for the 2007 or 2009 taxable year. 
   (d) 
    (e)  The amendments made to this section by the act
adding this subdivision shall apply to discharges occurring on or
after January 1, 2013.
  SEC. 2.  This act shall become operative only if Senate Bill 391 of
the 2013-14 Regular Session is enacted and takes effect.
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to provide tax relief to distressed homeowners at the
earliest possible time, it is necessary for this act to take effect
immediately.