BILL NUMBER: SJR 20	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Alquist

                        JANUARY 25, 2010

   Relative to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SJR 20, as introduced, Alquist. Taxation: sale of principal
residence.
   Under existing law, capital gains taxes are imposed upon the sale
of capital assets.
   This bill would memorialize the Congress and the President to
enact legislation that would eliminate capital gains taxes on the
sale of a principal residence by a senior citizen 65 years of age and
older.
   Fiscal committee: no.



   WHEREAS, Federal income tax laws impose capital gains taxes upon
the sale of capital assets; and
   WHEREAS, A taxpayer is allowed to exclude from income up to
$250,000, or $500,000 for joint returns, of gain from the sale of a
qualifying principal residence; and
   WHEREAS, Seniors are subject to capital gains taxes on the sale of
their home even if they move to assisted living units, where they
may be subject to heavy upfront fees; and
   WHEREAS, The death of a spouse creates a disparity in tax
treatment in that an elderly couple is required to pay capital gains
taxes upon the sale of their home but a surviving partner can reduce
his or her capital gains by virtue of a stepped up basis in computing
capital gains that is allowed upon the death of his or her spouse;
now, therefore, be it
   Resolved by the Senate and the Assembly of the State of
California, jointly, That the Legislature respectfully requests
Congress and the President to enact legislation to eliminate capital
gains taxes on the sale of a principal residence by a senior citizen
65 years of age and older; and be it further
   Resolved, That the Secretary of the Senate transmit copies of this
resolution to the President and Vice President of the United States,
to the Speaker of the House of Representatives, to the Majority
Leader of the Senate, and to each Senator and Representative from
California in the Congress of the United States.