Bill Text: CA SB49 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Income tax credit: qualified principal residence.

Spectrum: Moderate Partisan Bill (Republican 11-2)

Status: (Introduced - Dead) 2010-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB49 Detail]

Download: California-2009-SB49-Amended.html

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BILL NUMBER: SB 49	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 26, 2009
	AMENDED IN SENATE  MAY 6, 2009
	AMENDED IN SENATE  APRIL 14, 2009

INTRODUCED BY    Senator   Dutton 
 Senators   Dutton   and Padilla 

                        JANUARY 13, 2009

   An act to amend Section 17059 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 49, as amended, Dutton. Income tax credit: qualified principal
residence.
   The Personal Income Tax Law authorizes various credits against the
taxes imposed by that law. Existing law authorizes a credit against
those taxes in an amount equal to the lesser of 5% of the purchase
price of a qualified principal residence, as defined, purchased on
and after March 1, 2009, and before March 1, 2010, or $10,000,
allocated by the Franchise Tax Board on a first-come-first-served
basis. Existing law requires a taxpayer to provide the Franchise Tax
Board with a certification from the seller of the qualified principal
residence that the residence, has never been previously occupied
within one week of the sale of the residence and caps the total
amount of the credit at $100,000,000.
   This bill would provide that the tax credit is authorized for
purchases of a qualified principal residence made before December 1,
2010, subject to specified restrictions. This bill would revise the
certification requirements to provide that the taxpayer receive the
certification no later than one week after the close of escrow on the
qualified principal residence and that the Franchise Tax Board be
provided with the certification upon request by the board. This bill
would also remove the cap on the total credit amount allowed and the
requirement that the tax credits be allocated on a
first-come-first-served basis.
   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 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
December 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). The purchase of a qualified
principal residence that occurs on and after March 1, 2010, and
before December 1, 2010, must be made pursuant to an enforceable
contract to purchase the qualified principal residence  that is
 executed prior to March 1, 2010.
   (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 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 receives a certification from the seller of the qualified
principal residence that the residence has never been previously
occupied. The seller shall provide the certification to the taxpayer
no later than one week after the close of escrow of the qualified
principal residence. The taxpayer shall retain the certification and
provide it to the Franchise Tax Board upon request.
   (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 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.
   (e) The credit allowed by this section is not a business credit
within the meaning of Section 17039.2. 
   (f) This section shall remain in effect only until December 1,
2013, and as of that date is repealed.  
   (g) 
    (f)  The amendments made to this  act 
 section  by the act adding this subdivision shall apply to
purchases that occur on or after March 1, 2009, and before December
1, 2010. 
   (g) This section shall remain in effect only until December 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before December 1, 2013, deletes or extends
that date. 
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.