Bill Text: CA SB913 | 2009-2010 | Regular Session | Introduced
Bill Title: Income tax: credit: purchase: principal residence.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-04-01 - Set, first hearing. Hearing canceled at the request of author. [SB913 Detail]
Download: California-2009-SB913-Introduced.html
BILL NUMBER: SB 913 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Calderon
JANUARY 28, 2010
An act to amend Section 17059 of, and to add and repeal Section
17059.1 of, the Revenue and Taxation Code, relating to taxation,
making an appropriation therefor, and declaring the urgency thereof,
to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 913, as introduced, Calderon. Income tax: credit: purchase:
principal residence.
(1) The Personal Income Tax Law authorizes a credit against the
taxes imposed by that law in an amount equal to the lesser of 5% of
the purchase price or $10,000 in the case of the purchase of a
qualified principal residence on and after March 1, 2009, and before
March 1, 2010, but not to exceed an aggregate limitation of
$100,000,000 for all credits allowable. Existing law requires, for
each amount of credit allowed, that a certification that the
residence has never been occupied be provided to the Franchise Tax
Board within one week of the sale of the qualified principal
residence.
This bill would limit the credit to taxpayers who purchased a
qualified principal residence on and after March 1, 2009, and before
July 1, 2009, and on and after the effective date of this bill and
before July 1, 2010. This bill would increase the aggregate amount of
credits that may be allowed by requiring the aggregate limitation of
$100,000,000 in credits to be reduced by only 70% of the credit
amount allocated under each certification received by the Franchise
Tax Board.
This bill would also authorize a credit in an amount equal to the
lesser of 5% of the purchase price or $10,000 in the case of the
purchase of a qualified principal residence on and after the date
upon which all tax credits have been allocated under the previous tax
credit and before January 1, 2011, but not to exceed an aggregate
limitation of $200,000,000 for all credits allowable under this tax
credit. This bill would require that the aggregate limitation of
$200,000,000 in credits be reduced by only 70% of the credit amount
allocated under each certification received by the Franchise Tax
Board.
(2) The bill would appropriate the sum of $44,000 from the General
Fund to the Franchise Tax Board, in augmentation of a specified
appropriation made in the 2009-10 Budget Act.
(3) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17059 of the Revenue and Taxation Code is
amended to read:
17059. (a) (1) In the case of any taxpayer who purchases a
qualified principal residence on and after March 1, 2009, and
before July 3, 2009, and any taxpayer who purchases a qualified
principal residence on and after the effective date of the act
amending this paragraph and before March
July 1, 2010, there shall be allowed as a credit against
the "net tax," as defined in Section 17039, an amount equal to the
lesser of 5 percent of the purchase price of the qualified principal
residence or ten thousand dollars ($10,000).
(2) The amount of any credit allowed under paragraph (1) shall be
applied in equal amounts over for eac
h of the three successive taxable years beginning with the
taxable year in which the purchase of the qualified principal
residence is made.
(3) The credit under this section shall be allowed for the
purchase of only one qualified principal residence with respect to
any taxpayer.
(b) (1) For purposes of this section, "qualified principal
residence" means a single-family residence, whether detached or
attached, that has never been occupied, that is purchased to be the
principal residence of the taxpayer for a minimum of two years and is
eligible for the homeowner's exemption under Section 218.
(2) No credit shall be allowed under this section unless the
taxpayer submits with his or her tax return a certification by the
seller of the qualified principal residence that the residence has
never been previously occupied. The seller shall provide the
certification to the taxpayer and to the Franchise Tax Board within
one week of the sale after the close of
escrow of the qualified principal residence.
(3) If the taxpayer does not occupy the qualified principal
residence as his or her principal residence for at least two years
immediately following the purchase the credit shall be canceled, and
the taxpayer shall be liable for any credit allowed under this
section on previous tax returns.
(c) (1) In the case of two married taxpayers filing separately,
the credit allowed under subdivision (a) shall be equally apportioned
between the two taxpayers.
(2) If two or more taxpayers who are not married purchase a
qualified principal residence, the amount of the credit allowed under
subdivision (a) shall be allocated among the taxpayers in the same
manner as each taxpayer's percentage of ownership, except that the
total amount of the credits allowed to all of these taxpayers shall
not exceed ten thousand dollars ($10,000).
(d) The total amount of credit that may be allowed
allocated pursuant to this section shall not
exceed one hundred million dollars ($100,000,000). For each
certification received from a seller, as described in paragraph (2)
of subdivision (b), the total remaining amount of credit available
for allocation shall be reduced by an amount equal to 70 percent of
the credit allocated to the taxpayer. No credit shall be allocated to
a taxpayer who purchased a qualified principal residence before July
3, 2009, unless a certification was provided to the Franchise Tax
Board within one week before or after the close of escrow and
received by the Franchise Tax Board no later than July 2, 2009.
(e) (1) Upon receipt of the certification from the seller, as
described in paragraph (2) of subdivision (b), the Franchise Tax
Board shall allocate the credit to the taxpayer on a
first-come, first-served first-come-first-served
basis.
(2) The taxpayer shall claim the credit on a timely filed original
return.
(3) The date a certification is received shall be determined by
the Franchise Tax Board.
(4) (A) The determinations determination
of the Franchise Tax Board with respect to the date a
certification is received, and whether a return has been timely filed
for purposes of this subdivision, may shall
not be reviewed in any administrative or judicial proceeding.
(B) Any disallowance of a credit claimed due to a determination
under this subdivision, including the application of the limitation
specified in paragraph (1), shall be treated as a mathematical error
appearing on the return. Any amount of tax resulting from that
disallowance may be assessed by the Franchise Tax Board in the same
manner as provided by Section 19051.
(f) The Franchise Tax Board may prescribe rules,
guidelines, or procedures any rule, guideline, or
procedure necessary or appropriate to carry out the purposes of
this section, including any guidelines rule,
guideline, or procedure regarding the allocation of the credit
allowed under this section. Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code
does sh all not apply to any
rule, guideline, or procedure prescribed by the Franchise Tax Board
pursuant to this section.
(g) The credit allowed by this section is not a business credit
within the meaning of Section 17039.2.
(h) This section shall remain in effect only until December 1,
2013, and as of that date is repealed.
SEC. 2. Section 17059.1 is added to the Revenue and Taxation Code,
to read:
17059.1. (a) (1) In the case of any taxpayer who purchases a
qualified principal residence on and after the date upon which all
tax credits have been allocated pursuant to Section 17059, and before
January 1, 2011, there shall be allowed as a credit against the "net
tax," as defined in Section 17039, an amount equal to the lesser of
5 percent of the purchase price of the qualified principal residence
or ten thousand dollars ($10,000).
(2) The amount of any credit allowed under paragraph (1) shall be
applied in equal amounts for each of the three successive taxable
years beginning with the taxable year in which the purchase of the
qualified principal residence is made.
(3) The credit under this section shall be allowed for the
purchase of only one qualified principal residence with respect to
any taxpayer.
(b) (1) For purposes of this section, "qualified principal
residence" means a single-family residence, whether detached or
attached, that has never been occupied, that is purchased to be the
principal residence of the taxpayer for a minimum of two years and is
eligible for the homeowner's exemption under Section 218.
(2) No credit shall be allowed under this section unless the
taxpayer submits with his or her tax return a certification by the
seller of the qualified principal residence that the residence has
never been previously occupied. The seller shall provide the
certification to the taxpayer and to the Franchise Tax Board within
one week after the close of escrow of the qualified principal
residence.
(3) If the taxpayer does not occupy the qualified principal
residence as his or her principal residence for at least two years
immediately following the purchase the credit shall be canceled, and
the taxpayer shall be liable for any credit allowed under this
section on previous tax returns.
(4) A taxpayer may, but is not required to, reserve a credit prior
to close of escrow. To reserve a credit, the taxpayer and seller
shall jointly sign and submit to the Franchise Tax Board a
certification that they have entered into the agreement on or after
the date upon which all tax credits have been allocated pursuant to
Section 17059, and before January 1, 2011. Upon receipt of the joint
certification, the Franchise Tax Board shall notify the taxpayer that
the board has conditionally reserved the credit for the taxpayer
pending receipt after close of escrow of the certification that the
qualified principal residence has never been previously occupied. The
conditional reservation shall be issued to the taxpayer on a
first-come-first-served basis.
(c) (1) In the case of two married taxpayers filing separately,
the credit allowed under subdivision (a) shall be equally apportioned
between the two taxpayers.
(2) If two or more taxpayers who are not married purchase a
qualified principal residence, the amount of the credit allowed under
subdivision (a) shall be allocated among the taxpayers in the same
manner as each taxpayer's percentage of ownership, except that the
total amount of the credits allowed to all of these taxpayers shall
not exceed ten thousand dollars ($10,000).
(d) The total amount of credit that may be allowed pursuant to
this section shall not exceed two hundred million dollars
($200,000,000). For each certification received from a seller, as
described in paragraph (2) of subdivision (b), the total remaining
amount of credit available for allocation shall be reduced by an
amount equal to 70 percent of the credit allocated to the taxpayer.
(e) (1) Upon receipt of the certification from the seller, as
described in paragraph (2) of subdivision (b), the Franchise Tax
Board shall allocate the credit to the taxpayer on a
first-come-first-served basis.
(2) The taxpayer shall claim the credit on a timely filed original
return.
(3) The date a certification is received shall be determined by
the Franchise Tax Board.
(4) (A) The determination of the Franchise Tax Board with respect
to the date a certification is received, and whether a return has
been timely filed for purposes of this subdivision, shall not be
reviewed in any administrative or judicial proceeding.
(B) Any disallowance of a credit claimed due to a determination
under this subdivision, including the application of the limitation
specified in paragraph (1), shall be treated as a mathematical error
appearing on the return. Any amount of tax resulting from that
disallowance may be assessed by the Franchise Tax Board in the same
manner as provided by Section 19051.
(f) The Franchise Tax Board may prescribe any rule, guideline, or
procedure necessary or appropriate to carry out the purposes of this
section, including any rule, guideline, or procedure regarding the
allocation of the credit allowed under 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.
(g) The credit allowed by this section is not a business credit
within the meaning of Section 17039.2.
(h) This section shall remain in effect only until December 1,
2014, and as of that date is repealed.
SEC. 3. The sum of forty-four thousand dollars ($44,000) is hereby
appropriated from the General Fund to the Franchise Tax Board, in
augmentation of Item 1730-001-0001 of Section 2.0 of the Budget Act
of 2009, as amended by Section 104 of Chapter 1 of the 2009-10 Fourth
Extraordinary Session.
SEC. 4. 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 facilitate California's economic recovery, a large
part of which is the maintenance of the new home tax credit, it is
necessary that this act take effect immediately.
