BILL NUMBER: SBX2 15	CHAPTERED
	BILL TEXT

	CHAPTER  11
	FILED WITH SECRETARY OF STATE  FEBRUARY 20, 2009
	APPROVED BY GOVERNOR  FEBRUARY 20, 2009
	PASSED THE SENATE  FEBRUARY 15, 2009
	PASSED THE ASSEMBLY  FEBRUARY 19, 2009
	AMENDED IN SENATE  FEBRUARY 15, 2009

INTRODUCED BY   Senator Ashburn
   (Coauthor: Senator Calderon)

                        FEBRUARY 11, 2009

   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 15, Ashburn. Personal income taxes: credit: principal
residence.
   The Personal Income Tax Law authorizes various credits against the
taxes imposed by that law.
   This bill would authorize 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, or $10,000 dollars.
   This bill would take effect immediately as a tax levy.


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 taxpayer who purchases a
qualified principal residence on and after March 1, 2009, and before
March 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 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 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 pursuant to
this section shall not exceed one hundred million dollars
($100,000,000).
   (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 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.
   (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 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.
   (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.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.