Bill Text: CA SB1149 | 2015-2016 | Regular Session | Amended
Bill Title: Personal income taxes: credit: principal residence.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2016-11-30 - From committee without further action. [SB1149 Detail]
Download: California-2015-SB1149-Amended.html
BILL NUMBER: SB 1149 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 15, 2016
AMENDED IN SENATE JUNE 1, 2016
AMENDED IN SENATE MAY 2, 2016
INTRODUCED BY Senator Stone
FEBRUARY 18, 2016
An act to add and repeal Section 17059 of the Revenue and Taxation
Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1149, as amended, Stone. Personal income taxes: credit:
principal residence.
The Personal Income Tax Law allows various credits against the
taxes imposed by that law.
This bill would, for a qualified principal residence, as defined,
that is purchased after January 1, 2017, and before January 1, 2020,
allow a credit against those taxes in an amount equal to the lesser
of 5% of the purchase price or $10,000 to qualified first-time
homebuyers, as defined. This bill would require the credit to be
applied in equal amounts over 3 successive taxable years and would
limit the total amount of the credit that may be allowed to
$100,000,000.
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. Section 17059 is added to the Revenue and Taxation
Code, to read:
17059. (a) (1) In the case of any qualified first-time homebuyer
who purchases a qualified principal residence on and after January 1,
2017, and before January 1, 2020, 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 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 qualified first-time homebuyer.
(b) For purposes of this section:
(1) "Qualified first-time homebuyer" means any individual, or the
individual's spouse, who had no present ownership interest in a
principal residence during the preceding three-year period ending on
the date of the purchase of the qualified principal residence. A
qualified first-time homebuyer's adjusted gross income during that
period shall not exceed the following amounts:
(A) One hundred thousand dollars ($100,000) for a qualified
taxpayer filing a joint return, head of household, or a surviving
spouse, as defined in Section 17046.
(B) Fifty thousand dollars ($50,000) for a qualified taxpayer
filing a return other than as described in subparagraph (A).
(2) "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.
(c) (1) No credit shall be allowed under this section unless the
qualified first-time homebuyer 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 qualified first-time homebuyer and
to the Franchise Tax Board within one week of the sale of the
qualified principal residence.
(2)
(c) (1) If the qualified
first-time homebuyer 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 qualified first-time homebuyer shall be liable for any credit
allowed under this section on previous tax returns.
(3)
(2) A credit shall not be allowed under this section
unless the qualified first-time homebuyer submits a certification
that he or she is a first-time homebuyer.
(d) (1) In the case of two married qualified first-time homebuyers
filing separately, the credit allowed under subdivision (a) shall be
equally apportioned between the two qualified first-time homebuyers.
(2) If two or more qualified first-time homebuyers who are not
married purchase a qualified principal residence, the amount of the
credit allowed under subdivision (a) shall be allocated among them in
the same manner as each qualified first-time homebuyer's percentage
of ownership, except that the total amount of the credits allowed to
all of these qualified first-time homebuyers shall not exceed ten
thousand dollars ($10,000).
(e) The total amount of credit that may be allowed pursuant to
this section shall not exceed one hundred million dollars
($100,000,000).
(f) The qualified first-time homebuyer shall claim the credit on a
timely filed original return.
(g) (1) Upon receipt of the certification from the qualified
first-time homebuyer, as described in paragraph (1)
(2) of subdivision (c), the Franchise Tax Board
shall allocate the credit to the qualified first-time homebuyer on a
first-come-first-served basis.
(2) If the certifications of two or more qualified first-time
homebuyers are received on the same day and the remaining amount of
credit to be allocated is insufficient to be allocated fully to each,
the credit shall be allocated to those qualified first-time
homebuyers on a pro rata basis.
(3) The date a certification is received shall be determined by
the Franchise Tax Board. The determinations 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 not be reviewed in any administrative or judicial
proceeding.
(4) Any disallowance of a credit claimed due to a determination
under this section, including the application of the limitation
specified in paragraph (2), 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.
(h) A credit shall not be allowed under this section if the
qualified first-time homebuyer, or his or her spouse, is related to
the seller within the meaning of Section 267 of the Internal Revenue
Code, related to losses, expenses, and interest with respect to
transactions between related taxpayers.
(i) A credit shall not be allowed under this section if the
qualified first-time homebuyer qualifies as a dependent, as defined
in Section 17056, of any other taxpayer during the taxable year of
the purchase.
(j) The Franchise Tax Board may prescribe rules, guidelines, or
procedures necessary or appropriate to carry out the purposes of this
section, including any guidelines 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 not apply to any rule, guideline, or procedure prescribed
by the Franchise Tax Board pursuant to this section.
(k) Section 41 does not apply to the credit allowed by this
section.
(l) This section shall remain in effect only until December 1,
2023, and as of that date is repealed.
SEC. 2. This act provides for a tax levy within the meaning of
Article IV of the California Constitution and shall go into immediate
effect.
