California Legislature—2013–14 Regular Session

Assembly BillNo. 673


Introduced by Assembly Member Grove

February 21, 2013


An act to amend Section 17054 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL’S DIGEST

AB 673, as introduced, Grove. Personal income taxes: credits: personal exemption.

The Personal Income Tax Law authorizes a credit of $321, subject to a specified adjustment for inflation, for each dependent of the taxpayer.

This bill would allow a qualified taxpayer, as specified, to claim a credit of $321, subject to a specified adjustment for inflation, for an expected child, as defined.

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:

P1    1

SECTION 1.  

Section 17054 of the Revenue and Taxation Code
2 is amended to read:

3

17054.  

In the case of individuals, the following credits for
4personal exemption may be deducted from the tax imposed under
5Section 17041 or 17048, less any increases imposed under
6paragraph (1) of subdivision (d) or paragraph (1) of subdivision
7(e), or both, of Section 17560.

P2    1(a) In the case of a single individual, a head of household, or a
2married individual making a separate return, a credit of fifty-two
3dollars ($52).

4(b) In the case of a surviving spouse (as defined in Section
517046), or a husband and wife making a joint return, a credit of
6one hundred four dollars ($104). If one spouse was a resident for
7the entire taxable year and the other spouse was a nonresident for
8all or any portion of the taxable year, the personal exemption shall
9be divided equally.

10(c) In addition to any other credit provided in this section, in
11the case of an individual who is 65 years of age or over by the end
12of the taxable year, a credit of fifty-two dollars ($52).

13(d) (1) A credit of two hundred twenty-seven dollars ($227)
14for each dependent (as defined in Section 17056) for whom an
15exemption is allowable under Section 151(c) of the Internal
16Revenue Code, relating to additional exemption for dependents.
17The credit allowed under this subdivision for taxable years
18beginning on or after January 1, 1999, shall not be adjusted
19pursuant to subdivision (i) for any taxable year beginning before
20January 1, 2000.

21(2) The credit allowed under paragraph (1) may not be denied
22on the basis that the identification number of the dependent, as
23 defined in Section 17056, for whom an exemption is allowable
24under Section 151(c) of the Internal Revenue Code, relating to
25additional exemption for dependents, is not included on the return
26claiming the credit.

27(3) (A) For taxable years beginning on or after January 1, 2009,
28the credit allowed under paragraph (1) for each dependent shall
29be equal to the credit allowed under subdivision (a). This
30subparagraph shall cease to be operative for taxable years beginning
31on or after January 1, 2011, unless the Director of Finance makes
32the notification pursuant to Section 99040 of the Government
33Code, in which case this subparagraph shall cease to be operative
34for taxable years beginning on or after January 1, 2013.

35(B) For taxable years that subparagraph (A) ceases to be
36operative, the credit allowed under paragraph (1) for each
37dependent shall be equal to the amount that would be allowed if
38subparagraph (A) had never been operative.

P3    1(e) A credit for personal exemption of fifty-two dollars ($52)
2for the taxpayer if he or she is blind at the end of his or her taxable
3year.

4(f) A credit for personal exemption of fifty-two dollars ($52)
5for the spouse of the taxpayer if a separate return is made by the
6taxpayer, and if the spouse is blind and, for the calendar year in
7which the taxable year of the taxpayer begins, has no gross income
8and is not the dependent of another taxpayer.

9(g) For the purposes of this section, an individual is blind only
10if either (1) his or her central visual acuity does not exceed 20/200
11in the better eye with correcting lenses, or (2) his or her visual
12acuity is greater than 20/200 but is accompanied by a limitation
13in the fields of vision such that the widest diameter of the visual
14field subtends an angle no greater than 20 degrees.

15(h) In the case of an individual with respect to whom a credit
16under this section is allowable to another taxpayer for a taxable
17year beginning in the calendar year in which the individual’s
18taxable year begins, the credit amount applicable to that individual
19for that individual’s taxable year is zero.

20(i) For each taxable year beginning on or after January 1, 1989,
21the Franchise Tax Board shall compute the credits prescribed in
22this section. That computation shall be made as follows:

23(1) The California Department of Industrial Relations shall
24transmit annually to the Franchise Tax Board the percentage change
25in the California Consumer Price Index for all items from June of
26the prior calendar year to June of the current calendar year, no
27later than August 1 of the current calendar year.

28(2) The Franchise Tax Board shall add 100 percent to the
29percentage change figure which is furnished to them pursuant to
30paragraph (1), and divide the result by 100.

31(3) The Franchise Tax Board shall multiply the immediately
32preceding taxable year credits by the inflation adjustment factor
33determined in paragraph (2), and round off the resulting products
34to the nearest one dollar ($1).

35(4) In computing the credits pursuant to this subdivision, the
36credit provided in subdivision (b) shall be twice the credit provided
37in subdivision (a).

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38(j) (1) The credit allowed under paragraph (1) of subdivision
39(d) may be claimed for an expected child by a qualified taxpayer
40during the taxable year.

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P4    1(2) The following terms shall mean the following:

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2(A) “Expected child” means an unborn child with a medically
3verified anticipated delivery date for the subsequent taxable year.

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4(B) “Qualified taxpayer” means any of the following:

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5(i) A single individual who is pregnant with an expected child.

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6(ii) A married individual making a separate return who is
7pregnant with an expected child.

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8(iii) A head of household who is pregnant with an expected
9child.

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10(iv) A married couple making a joint return in which the married
11couple has an expected child.

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12(C) The credit shall apply only if the expected child, if born,
13would qualify as a dependent under paragraph (1) of subdivision
14(d) for the taxable year the credit is claimed.

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15(D) This subdivision shall not be construed to provide a credit
16under this subdivision if the expected child is born in the taxable
17year that the credit under paragraph (1) of subdivision (d) may
18be claimed for the child.

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19

SEC. 2.  

This act provides for a tax levy within the meaning of
20Article IV of the Constitution and shall go into immediate effect.



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