Senate BillNo. 1381


Introduced by Senator Mendoza

February 19, 2016


An act to add Section 17053 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL’S DIGEST

SB 1381, as introduced, Mendoza. Personal income taxes: credit: teachers.

The Personal Income Tax Law allows various credits against the taxes imposed by that law.

This bill would, for taxable years beginning on or after January 1, 2017, allow a credit under the Personal Income Tax Law in an amount equal to $5,000 to a qualified taxpayer, as defined to include specified full-time teachers. This bill would state the intent of the Legislature to enact legislation to provide that the credit amount in excess of tax liability would be refundable in those years in which an appropriation for that purpose is made by the Legislature and includes findings relating to that appropriation.

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 17053 is added to the Revenue and
2Taxation Code
, to read:

3

17053.  

(a) For each taxable year beginning on or after January
41, 2017, there shall be allowed to a qualified taxpayer a credit
P2    1against the “net tax,” as defined in Section 17039, in an amount
2equal to five thousand dollars ($5,000).

3(b) For the purposes of this section:

4(1) “Full time” means a minimum of 35 hours per week worked.

5(2) “Qualified taxpayer” means a full-time teacher credentialed
6pursuant to Sections 80021 to 80025, inclusive, of Chapter 1 of
7Division 8 of Title 5 of the California Code of Regulations, if he
8or she serves as the teacher of record for a classroom for at least
9one school day during the taxable year in which the credit is
10claimed. “Qualified taxpayer” shall not include a teacher who
11solely possesses a 30-day substitute teaching permit, as defined in
12Section 80025 of Chapter 1 of Division 8 of Title 5 of the
13California Code of Regulations.

14(c) (1) Subject to paragraph (2), in the case where the credit
15allowed by this section exceeds the “net tax” the excess may be
16carried over to reduce the “net tax,” in the following year, and
17succeeding years if necessary, until the credit is exhausted.

18(2) It is the intent of the Legislature to enact legislation to
19provide that in the case where the credit allowed by this section
20exceeds the “net tax,” the excess, in lieu of the carry forward
21pursuant to paragraph (1), may be refunded to taxpayers, upon
22appropriation by the Legislature.

23(d) Section 41 does not apply to the tax credit allowed by this
24section.

25

SEC. 2.  

The Legislature finds and declares that it is the intent
26of the Legislature that, pursuant to legislation to be enacted by the
27Legislature, the state would treat an appropriation that would be
28made as described in paragraph (2) of subdivision (c) of Section
2917053 of the Revenue and Taxation Code as a tax expenditure
30program that would have no impact on school funding, state
31reserves, or debt-related payments. To this end, any appropriation
32for the refundable portion of the tax credit that would be allowed
33pursuant to legislation by the Legislature would not reduce state
34obligations set forth in Sections 8, 20, and 21 of Article XVI of
35the California Constitution.

36

SEC. 3.  

This act provides for a tax levy within the meaning
37of Article IV of the Constitution and shall go into immediate effect.



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