Bill Text: CA SB891 | 2015-2016 | Regular Session | Amended
Bill Title: Personal income tax: standard deduction.
Sponsorship: Partisan Bill (Republican 1)
Status: (Failed) 2016-11-30 - From committee without further action. [SB891 Detail]
Download: California-2015-SB891-Amended.html
BILL NUMBER: SB 891 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 15, 2016
INTRODUCED BY Senator Gaines
JANUARY 20, 2016
An act to amend Section 10208 of the Commercial Code,
relating to leases. An act to amend Section 17073.5 of
the Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 891, as amended, Gaines. Commercial law: personal
property leases. Personal income tax: standard
deduction.
The Personal Income Tax Law authorizes a taxpayer to take, as a
deduction, the larger of the itemized deductions or the standard
deduction and provides an adjustment for inflation for that standard
deduction. For the 2015 taxable year, the standard deduction for a
taxpayer who is a single filer, married filing separately, or a
registered domestic partner filing separately is $4,044 and for a
head of household, surviving spouse, or taxpayers who are married
filing jointly or registered domestic partners filing jointly, the
standard deduction is $8,088.
This bill, for taxable years beginning on or after January 1,
2016, would increase the current standard deduction amount by 25% and
would continue to adjust that amount for inflation.
This bill would take effect immediately as a tax levy.
Existing law, the Uniform Commercial Code-Leases, governs the
various aspects of leases of personal property, including their
formation, construction, effect, and performance. Existing law
provides than an agreement modifying a lease contract does not need
consideration in order to be binding.
This bill would make nonsubstantive changes to those provisions.
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 17073.5 of the
Revenue and Taxation Code is amended to read:
17073.5. (a) A For taxable years
beginning on or after January 1, 2016, a taxpayer may elect to
take a standard deduction as follows:
(1) In the case of a taxpayer, other than a head of a household or
a surviving spouse (as defined in Section 17046) or a married couple
filing a joint return, the standard deduction shall be one
thousand eight hundred eighty dollars ($1,880). five
thousand fifty -five dollars ($5,055).
(2) In the case of a head of household or a surviving spouse (as
defined in Section 17046) or a married couple filing a joint return,
the standard deduction shall be three thousand seven hundred
sixty dollars ($3,760). ten thousand one hundred ten
dollars ($10,110).
(b) The standard deduction provided for in subdivision (a) shall
be in lieu of all deductions other than those which are to be
subtracted from gross income in computing adjusted gross income under
Section 17072.
(c) (1) The provisions of this section shall be applied in lieu of
the provisions of Sections 63(c) and 63(f) of the Internal Revenue
Code, relating to standard deductions.
(2) Notwithstanding paragraph (1), Section 63(c)(5) of the
Internal Revenue Code, relating to limitations on the standard
deduction of certain dependents, and Section 63(c)(6)of
63(c)(6) of the Internal Revenue Code, relating
to certain individuals not eligible for the standard deduction, shall
apply, except as otherwise provided. For purposes of this paragraph,
the amount specified in Section 63(c)(5) of the Internal Revenue
Code shall be adjusted for inflation in accordance with the
provisions of Section 63(c)(4) of the Internal Revenue Code.
(d) For each taxable year beginning on or after January 1,
1988, 2017, the Franchise Tax Board
shall recompute the standard deduction amounts prescribed in
subdivision (a). That computation shall be made as follows:
(1) The California Department of Industrial Relations shall
transmit annually to the Franchise Tax Board the percentage change in
the California Consumer Price Index for all items from June of the
prior calendar year to June of the current calendar year, no later
than August 1 of the current calendar year.
(2) The Franchise Tax Board shall compute an inflation adjustment
factor by adding 100 percent to that portion of the percentage change
figure which is furnished pursuant to paragraph (1) and dividing the
result by 100.
(3) The Franchise Tax Board shall multiply the standard deduction
amounts in the preceding taxable year by the inflation adjustment
factor determined in paragraph (2), and round off the resulting
products to the nearest one dollar ($1).
(4) In computing the standard deduction amounts pursuant to this
subdivision, the amount provided in paragraph (2) of subdivision (a)
shall be twice the amount provided in paragraph (1) of subdivision
(a).
SEC. 2. 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 10208 of the Commercial Code
is amended to read:
10208. (a) An agreement modifying a lease contract does not need
consideration to be binding.
(b) A signed lease agreement that excludes modification or
rescission except by a signed writing may not be otherwise modified
or rescinded, but, except as between merchants, such a requirement on
a form supplied by a merchant shall be separately signed by the
other party.
(c) Although an attempt at modification or rescission does not
satisfy the requirements of subdivision (b), it may operate as a
waiver.
(d) A party who has made a waiver affecting an executory portion
of a lease contract may retract the waiver by reasonable notification
received by the other party that strict performance will be required
of any term waived, unless the retraction would be unjust in view of
a material change of position in reliance on the waiver.
