SB 891,
as amended, Gaines. begin deleteCommercial law: personal property leases. end deletebegin insertPersonal income tax: standard deduction.end insert
The Personal Income Tax Law authorizes a taxpayer to take, as a deduction, the larger of the itemized deductions or the standard deduction and provides an adjustment for inflation for that standard deduction. For the 2015 taxable year, the standard deduction for a taxpayer who is a single filer, married filing separately, or a registered domestic partner filing separately is $4,044 and for a head of household, surviving spouse, or taxpayers who are married filing jointly or registered domestic partners filing jointly, the standard deduction is $8,088.
end insertbegin insertThis bill, for taxable years beginning on or after January 1, 2016, would increase the current standard deduction amount by 25% and would continue to adjust that amount for inflation.
end insertbegin insertThis bill would take effect immediately as a tax levy.
end insertExisting law, the Uniform Commercial Code-Leases, governs the various aspects of leases of personal property, including their formation, construction, effect, and performance. Existing law provides than an agreement modifying a lease contract does not need consideration in order to be binding.
end deleteThis bill would make nonsubstantive changes to those provisions.
end deleteVote: majority.
Appropriation: no.
Fiscal committee: begin deleteno end deletebegin insertyesend insert.
State-mandated local program: no.
The people of the State of California do enact as follows:
begin insertSection 17073.5 of the end insertbegin insertRevenue and Taxation
2Codeend insertbegin insert is amended to read:end insert
(a) begin deleteA end deletebegin insertFor taxable years beginning on or after January
41, 2016, a end inserttaxpayer may elect to take a standard deduction as
5follows:
6(1) In the case of a taxpayer, other than a head of a household
7or a surviving spouse (as defined in Section 17046) or a married
8couple filing a joint return, the standard deduction shall bebegin delete one begin insert
five thousand
9thousand eight hundred eighty dollars ($1,880).end delete
10fiftyend insertbegin insert-five dollars ($5,055).end insert
11(2) In the case of a head of household or a surviving spouse (as
12defined in Section 17046) or a married couple filing a joint return,
13the standard deduction shall bebegin delete three thousand seven hundred sixty begin insert ten thousand one hundred ten dollars ($10,110).end insert
14dollars ($3,760).end delete
15(b) The standard deduction provided for in subdivision (a) shall
16be in lieu of all deductions other than those which are to be
17subtracted from gross income in computing adjusted gross income
18under Section 17072.
19(c) (1) The provisions of this section shall be applied in lieu of
20the provisions of Sections 63(c) and 63(f) of the Internal Revenue
21Code, relating to standard deductions.
22(2) Notwithstanding paragraph (1), Section 63(c)(5) of the
23Internal Revenue Code, relating to limitations on the standard
24deduction of certain dependents, and Sectionbegin delete 63(c)(6)ofend deletebegin insert 63(c)(6)
25ofend insert the Internal Revenue Code, relating to certain individuals not
26eligible for the standard deduction, shall apply, except as otherwise
27provided. For purposes of this paragraph, the amount specified in
28Section 63(c)(5) of the Internal Revenue Code shall be adjusted
29for inflation in accordance with the provisions of
Section 63(c)(4)
30of the Internal Revenue Code.
31(d) For each taxable year beginning on or after January 1,begin delete 1988,end delete
32begin insert 2017,end insert the Franchise Tax Board shall recompute the standard
33deduction amounts prescribed in subdivision (a). That computation
34shall be made as follows:
P3 1(1) The California Department of Industrial Relations shall
2transmit annually to the Franchise Tax Board the percentage change
3in the California Consumer Price Index for all items from June of
4the prior calendar year to June of the current calendar year, no
5later than August 1 of the current calendar year.
6(2) The Franchise Tax Board shall compute an inflation
7adjustment
factor by adding 100 percent to that portion of the
8percentage change figure which is furnished pursuant to paragraph
9(1) and dividing the result by 100.
10(3) The Franchise Tax Board shall multiply the standard
11deduction amounts in the preceding taxable year by the inflation
12adjustment factor determined in paragraph (2), and round off the
13resulting products to the nearest one dollar ($1).
14(4) In computing the standard deduction amounts pursuant to
15this subdivision, the amount provided in paragraph (2) of
16subdivision (a) shall be twice the amount provided in paragraph
17(1) of subdivision (a).
This act provides for a tax levy within the meaning of
19Article IV of the Constitution and shall go into immediate effect.
Section 10208 of the Commercial Code is
21amended to read:
(a) An agreement modifying a lease contract does not
23need consideration to be binding.
24(b) A signed lease agreement that excludes modification or
25rescission except by a signed writing may not be otherwise
26modified or rescinded, but, except as between merchants, such a
27requirement on a form supplied by a merchant shall be separately
28
signed by the other party.
29(c) Although an attempt at modification or rescission does not
30satisfy the requirements of subdivision (b), it may operate as a
31waiver.
32(d) A party who has made a waiver affecting an executory
33portion of a lease contract may retract the waiver by reasonable
34notification received by the other party that strict performance will
35be required of any term waived, unless the retraction would be
36unjust in view of a material change of position in reliance on the
37waiver.
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