BILL NUMBER: SB 1664 AMENDED BILL TEXT AMENDED IN ASSEMBLY JUNE 15, 2000 AMENDED IN ASSEMBLY JUNE 14, 2000 INTRODUCED BYSenator KarnetteSenators Karnette and Leslie (Coauthors: Senators Alarcon, Chesbro, Costa, Dunn, Escutia, Figueroa, Hughes, McPherson, Ortiz, Perata, Rainey, Sher, Solis, and Soto) (Coauthors: Assembly Members Alquist, Aroner, Calderon, Cardoza, Corbett, Correa, Davis, Dutra, Gallegos, Hertzberg, Honda, Jackson, Knox, Kuehl, Lempert, Longville, Lowenthal, Machado, Mazzoni, Nakano, Reyes, Romero, Scott, Shelley, Steinberg, Strom-Martin, Thomson, Torlakson, Villaraigosa, Vincent, Washington, Wiggins, and Wildman) FEBRUARY 22, 2000 An act to amend Sections 20543, 20544, and 20563 of the Revenue and Taxation Code, relating to taxation, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 1664, as amended, Karnette. Franchise and income tax laws: seniors' tax assistance: full value: property tax equivalent. The Gonsalves-Deukmejian-Petris Senior Citizens Property Tax Assistance Law provides for payment of assistance by the Franchise Tax Board to claimants, whether those claimants own or rent their residences, in accordance with schedules that reduce the amount of assistance provided as the amount of a claimant's household income increases along a specified scale of household income amounts. The amount of assistance for a claimant owning his or her residential dwelling is a specified percentage, based on household income, of tax on the first $34,000 of full value. The amount of assistance for a claimant renting his or her residence is a specified percentage, based on household income, of the statutory property tax equivalent of $250. This bill would provide a one-time 150% increase in property tax assistance payments for low-income senior citizens and disabled individuals for the 2000-01 fiscal year, as provided. This bill would declare that it is to take effect immediately as an urgency statute. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 20543 of the Revenue and Taxation Code is amended to read: 20543. (a) (1) The amount of assistance for a claimant owning his or her residential dwelling shall be based on claimant's household income for the period set forth in Section 20503. (2) Except as provided in paragraph (3), the percentage of assistance for which each claimant owning his or her residential dwelling shall be eligible shall be based on the following scale: The percentage of tax on the first $34,000 of full value If the total household income (as determined for tax (as defined in this part) purposes) used to provide is not more than: assistance is: $3,300 .................................. 96% 3,520 .................................. 94 3,740 .................................. 92 3,960 .................................. 90 4,180 .................................. 88 4,400 .................................. 86 4,620 .................................. 84 4,840 .................................. 82 5,060 .................................. 80 5,280 .................................. 78 5,500 .................................. 76 5,720 .................................. 73 5,940 .................................. 69 6,160 .................................. 65 6,380 .................................. 61 6,600 .................................. 57 6,820 .................................. 53 7,040 .................................. 49 7,260 .................................. 45 7,480 .................................. 41 7,700 .................................. 37 7,920 .................................. 34 8,140 .................................. 31 8,360 .................................. 28 8,580 .................................. 25 8,800 .................................. 22 9,020 .................................. 20 9,240 .................................. 18 9,460 .................................. 16 9,680 .................................. 14 9,900 .................................. 12 10,450 .................................. 10 11,000 .................................. 8 11,550 .................................. 7 12,100 .................................. 6 12,650 .................................. 5 13,200 .................................. 4 (3) For claims filed with respect to the 2000 calendar year, the percentage of assistance for which each claimant owning his or her residential dwelling shall be eligible shall be based on the following scale: The percentage of tax on the first $34,000 of full value If the total household income (as determined for tax (as defined in this part) purposes) used to provide is not more than: assistance is: $8,498 .................................. 240% 9,065 .................................. 235 9,631 .................................. 230 10,198 .................................. 225 10,765 .................................. 220 11,331 .................................. 215 11,897 .................................. 210 12,464 .................................. 205 13,031 .................................. 200 13,598 .................................. 195 14,164 .................................. 190 14,730 .................................. 183 15,297 .................................. 173 15,864 .................................. 163 16,430 .................................. 153 16,997 .................................. 143 17,563 .................................. 133 18,129 .................................. 123 18,697 .................................. 113 19,263 .................................. 103 19,830 .................................. 93 20,396 .................................. 85 20,962 .................................. 78 21,530 .................................. 70 22,096 .................................. 63 22,662 .................................. 55 23,229 .................................. 50 23,795 .................................. 45 24,362 .................................. 40 24,929 .................................. 35 25,495 .................................. 30 26,912 .................................. 25 28,328 .................................. 20 29,745 .................................. 18 31,161 .................................. 15 32,578 .................................. 13 33,993 .................................. 10 (b) With respect to assistance that is provided by the Franchise Tax Board pursuant to this chapter for the 1999 calendar year, the household income figures set forth in paragraph (2) of subdivision (a) shall be multiplied by a factor of 2.51. (c) With respect to assistance that is provided by the Franchise Tax Board pursuant to this chapter for the 2000 calendar year and each year thereafter, the household income figures that apply to assistance provided by the Franchise Tax Board during that period shall be the household income figures that applied to assistance provided by the Franchise Tax Board in the same period in the immediately preceding year, multiplied by an inflation factor calculated as follows: (1) On or before February 1 of each year, the Department of Industrial Relations shall transmit to the Franchise Tax Board the percentage change in the California Consumer Price Index for all items from June of the second preceding calendar year to June of the immediately preceding calendar year. (2) The Franchise Tax Board shall add 100 percent to the percentage change figure that is furnished pursuant to paragraph (1) and divide the result by 100. (3) The Franchise Tax Board shall multiply the immediately preceding household income figure by the inflation adjustment factor determined in paragraph (2), and round off the resulting product to the nearest one dollar ($1). SEC. 2. Section 20544 of the Revenue and Taxation Code is amended to read: 20544. (a) (1) The amount of assistance for a claimant renting his or her residence shall be based on the claimant's household income for the time period set forth in Section 20503. (2) Except as provided in paragraph (3), the percentage of assistance for which each claimant renting his or her residence shall be eligible shall be based on the following scale: If the total household The percentage of the income (as defined The statutory statutory property tax in this part) is not property tax equivalent used to more than: equivalent is: provide assistance is: $3,300 ................ $250 ................ 96% 3,520 ................ 250 ................ 94 3,740 ................ 250 ................ 92 3,960 ................ 250 ................ 90 4,180 ................ 250 ................ 88 4,400 ................ 250 ................ 86 4,620 ................ 250 ................ 84 4,840 ................ 250 ................ 82 5,060 ................ 250 ................ 80 5,280 ................ 250 ................ 78 5,500 ................ 250 ................ 76 5,720 ................ 250 ................ 73 5,940 ................ 250 ................ 69 6,160 ................ 250 ................ 65 6,380 ................ 250 ................ 61 6,600 ................ 250 ................ 57 6,820 ................ 250 ................ 53 7,040 ................ 250 ................ 49 7,260 ................ 250 ................ 45 7,480 ................ 250 ................ 41 7,700 ................ 250 ................ 37 7,920 ................ 250 ................ 34 8,140 ................ 250 ................ 31 8,360 ................ 250 ................ 28 8,580 ................ 250 ................ 25 8,800 ................ 250 ................ 22 9,020 ................ 250 ................ 20 9,240 ................ 250 ................ 18 9,460 ................ 250 ................ 16 9,680 ................ 250 ................ 14 9,900 ................ 250 ................ 12 10,450 ................ 250 ................ 10 11,000 ................ 250 ................ 8 11,550 ................ 250 ................ 7 12,100 ................ 250 ................ 6 12,600 ................ 250 ................ 5 13,200 ................ 250 ................ 4 (3) For claims filed with respect to the 2000 calendar year, the percentage of assistance for which each claimant renting his or her residence shall be eligible shall be based on the following scale: If the total household The percentage of the income (as defined The statutory statutory property tax in this part) is not property tax equivalent used to more than: equivalent is: provide assistance is: $8,498 ................ $625 ................ 96% 9,065 ................ 625 ................ 94 9,631 ................ 625 ................ 92 10,198 ................ 625 ................ 90 10,765 ................ 625 ................ 88 11,331 ................ 625 ................ 86 11,897 ................ 625 ................ 84 12,464 ................ 625 ................ 82 13,031 ................ 625 ................ 80 13,598 ................ 625 ................ 78 14,164 ................ 625 ................ 76 14,730 ................ 625 ................ 73 15,297 ................ 625 ................ 69 15,864 ................ 625 ................ 65 16,430 ................ 625 ................ 61 16,997 ................ 625 ................ 57 17,563 ................ 625 ................ 53 18,219 ................ 625 ................ 49 18,697 ................ 625 ................ 45 19,263 ................ 625 ................ 41 19,830 ................ 625 ................ 37 20,396 ................ 625 ................ 34 20,962 ................ 625 ................ 31 21,530 ................ 625 ................ 28 22,096 ................ 625 ................ 25 22,662 ................ 625 ................ 22 23,229 ................ 625 ................ 20 23,795 ................ 625 ................ 18 24,362 ................ 625 ................ 16 24,929 ................ 625 ................ 14 25,495 ................ 625 ................ 12 26,912 ................ 625 ................ 10 28,328 ................ 625 ................ 8 29,745 ................ 625 ................ 7 31,161 ................ 625 ................ 6 32,578 ................ 625 ................ 5 33,993 ................ 625 ................ 4 (b) With respect to assistance that is provided by the Franchise Tax Board pursuant to this chapter for the 1999 calendar year, the household income figures set forth in paragraph (2) of subdivision (a) shall be multiplied by a factor of 2.51. (c) With respect to assistance that is provided by the Franchise Tax Board pursuant to this chapter for the 2000 calendar year and each year thereafter, the household income figures that apply to assistance provided by the Franchise Tax Board during that period shall be the household income figures that applied to assistance provided by the Franchise Tax Board in the same period in the immediately preceding year, multiplied by an inflation factor calculated as follows: (1) On or before February 1 of each year, the Department of Industrial Relations shall transmit to the Franchise Tax Board the percentage change in the California Consumer Price Index for all items from June of the second preceding calendar year to June of the immediately preceding calendar year. (2) The Franchise Tax Board shall add 100 percent to the percentage change figure that is furnished pursuant to paragraph (1) and divide the result by 100. (3) The Franchise Tax Board shall multiply the immediately preceding household income figure by the inflation adjustment factor determined in paragraph (2), and round off the resulting product to the nearest one dollar ($1). SEC. 3. Section 20563 of the Revenue and Taxation Code is amended to read: 20563. (a) The claim on which the assistance is based shall be filed after July 1 of the fiscal year for which assistance is claimed but on or before October 15 succeeding the fiscal year for which assistance is claimed. The Franchise Tax Board may thereafter accept claims through June 30 succeeding the fiscal year for which assistance is claimed. (b) The state shall assist the claimant after July 15 and before November 15 of the calendar year in which the claim is filed, except that if the claim is defective, assistance shall be made as promptly as is practicable after the claim has been perfected. (c) A claimant who, because of a medical incapacity, is prevented from filing a timely claim, shall be permitted to file a claim within six months after the end of his or her medical incapacity or three (3) years succeeding the end of the fiscal year for which assistance is claimed, whichever date is earlier. SEC. 4. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to provide a one-time increase of property tax assistance payments for low-income seniors and disabled individuals for the 2000-01 fiscal year, it is necessary that this act go into immediate effect.