BILL NUMBER: SB 206 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 26, 2009
AMENDED IN SENATE APRIL 28, 2009
INTRODUCED BY Senator Dutton
FEBRUARY 23, 2009
An act to add and repeal Section 17059.5 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 206, as amended, Dutton. Income tax credit: principal
residence.
The Personal Income Tax Law authorizes various credits against the
taxes imposed by that law.
This bill would allow a credit to a qualified taxpayer, as
defined, who purchases a qualified principal residence, as defined,
on and after January 1, 2009, and before December 1, 2009
during a specified period . The credit would be
an amount equal to 10% of the purchase price, not to
exceed $8,000, as provided.
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:
SECTION 1. Section 17059.5 is added to the Revenue and Taxation
Code, to read:
17059.5. (a) (1) For taxable years beginning on or after January
1, 2009, and before January 1, 2010, in the case of a qualified
taxpayer who purchases a qualified principal residence on or after
January 1, 2009, and before December 1, 2009, there
17059.5. (a) In the case of a
qualified taxpayer who purchases a qualified principal residence on
or after the date of the act adding this section takes effect and
before the date that is the same day of the 12th month that follows
the effective date of this section, there shall be allowed as a
credit against the "net tax," as defined in Section 17039, an amount
equal to 10 percent of the purchase price of the qualified principal
residence, not to exceed eight thousand dollars ($8,000). The
credit shall be allowed for the taxable year in which the qualified
principal residence is purchased.
(2) The credit under this section shall be allowed for the
purchase of only one qualified principal residence with respect to
any taxpayer.
(3) A taxpayer may, but is not required to, reserve a credit prior
to close of escrow. To reserve a credit, the taxpayer and seller
shall jointly sign and submit to the Franchise Tax Board a
certification that they have entered into the agreement on
or after January 1, 2009, and before December 1, 2009. Upon receipt
of during the time period specified in subdivision (a)
for the purchase of a qualified principal residence. Upon receipt of
the joint certification, the Franchise Tax Board shall reserve
the credit for the taxpayer.
(b) (1) For the purposes of this section, "qualified principal
residence" means a single-family residence, whether detached or
attached, that has been previously occupied or foreclosed upon,
and that is purchased to be the principal residence of the
taxpayer for a minimum of three years and is eligible for the
homeowner's exemption under Section 218.
(2) For the purposes of this section "qualified taxpayer" means
the buyer either of the following:
(A) A purchaser that has not
owned a principal residence during the three-year period prior to the
date of purchase and does not have adjusted gross income over
ninety-five thousand dollars ($95,000) or one hundred seventy dollars
($170,000) for joint filers.
(B) A purchaser of a principal residence that has been foreclosed
upon
(3) If the taxpayer does not occupy the qualified principal
residence as his or her principal residence for at least three years
immediately following the purchase, the credit shall be disallowed,
and the taxpayer shall be liable for any underpayments attributable
to the disallowance of the credit.
(c) (1) In the case of married taxpayers filing
separately , the credit allowed under subdivision (a) shall
be equally divided between the taxpayers.
(2) If two or more taxpayers who are not married purchase a
qualified principal residence, the amount of the credit allowed under
subdivision (a) shall be allocated among the taxpayers in the same
manner as each taxpayer's percentage of ownership, except that the
total amount of the credits allowed to all of these taxpayers shall
not exceed eight thousand dollars ($8,000).
(d) The taxpayer shall claim the credit on a timely filed original
return.
(e) The date a certification is received shall be determined by
the Franchise Tax Board.
(1) The determinations of the Franchise Tax Board with respect to
the date a certification is received, and whether a return has been
timely filed for purposes of this section, may not be reviewed in any
administrative or judicial proceeding.
(2) Any disallowance of a credit claimed due to a determination
under this subdivision, shall be treated as a mathematical error
appearing on the return. Any amount of tax resulting from that
disallowance may be assessed by the Franchise Tax Board in the same
manner as provided by Section 19051.
(f) The Franchise Tax Board may prescribe rules, guidelines, or
procedures necessary or appropriate to carry out the purposes of this
section, including any guidelines regarding the allocation of the
credit allowed under this section. Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code shall not apply to any rule, guideline, or procedure prescribed
by the Franchise Tax Board pursuant to this section.
(g) The credit allowed by this section is not a business credit
within the meaning of Section 17039.2.
(h) This section shall remain in effect only until December 1,
2010 2012 , and as of that date is
repealed.
SEC. 2. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.