BILL NUMBER: AB 1552	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 22, 2012

INTRODUCED BY   Assembly Member Silva
    (   Coauthors:   Assembly Members 
 Achadjian,   Garrick,   Hagman,  
Jeffries,   Miller,   Olsen,   Solorio,
  and Wagner   ) 
    (   Coauthors:   Senators  
Cannella,   Dutton,   Fuller,   and Harman
  ) 

                        JANUARY 26, 2012

   An act to add Sections 17239 and 24356.9 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1552, as amended, Silva. Income taxes: deductions: 
Mello-Roos.   amounts paid on property tax bill. 
   The Personal Income Tax Law and the Corporation Tax Law authorize
various deductions in computing income that is subject to tax under
those laws.
   This bill would allow a deduction, under both of those laws, of
amounts paid  under the Mello-Roos Community Facilities Act
of 1982   on the property tax bill  .
   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.    The Legislature finds and declares all
of the following:  
   (a) It is a well-established federal position that a deduction for
personal property taxes is allowed to the extent the taxes are based
upon the assessed value of the property, also known as ad valorem
taxes, under Section 164 of the Internal Revenue Code.  
   (b) It is also a well-established federal position that a
deduction for real property taxes is not limited to ad valorem taxes
under Section 164 of the Internal Revenue Code.  
   (c) The Internal Revenue Code limits a deduction for personal
property taxes to ad valorem taxes, but no such limitation applies to
a deduction for real property taxes.  
   (d) It has been concluded that assessments under the Mello-Roos
Community Facilities Act of 1982 and certain other special taxes in
California are deductible under Section 164 of the Internal Revenue
Code even though they are not based upon the assessed value of the
property.  
   (e) California law conforms to the federal law described in
subdivisions (a) to (d), inclusive, and California taxpayers are
currently deducting taxes that are not based upon the assessed value
of the property.  
   (f) California is in a unique position with respect to the number
of taxpayers subject to assessments under the Mello-Roos Community
Facilities Act of 1982 and certain other special taxes, and
California taxpayers have a right to protect their current property
tax deduction. 
   SECTION 1.   SEC. 2.   Section 17239 is
added to the Revenue and Taxation Code, to read:
   17239.  For each taxable year beginning on or after January 1,
2012, there shall be allowed as a deduction the amount paid by the
taxpayer  pursuant to the Mello-Roos Community Facilities Act
of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of
Division 2 of Title 5 of the Government Code)   on the
property tax bill, including, but not limited to, real property
taxes, personal property taxes, special taxes, special assessments,
fees, or other charges  .
   SEC. 2.   SEC. 3.   Section 24356.9 is
added to the Revenue and Taxation Code, to read:
   24356.9.  For each taxable year beginning on or after January 1,
2012, there shall be allowed as a deduction the amount paid by the
taxpayer  pursuant to the Mello-Roos Community Facilities Act
of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of
Division 2 of Title 5 of the Government Code)   on the
property tax bill, including, but not limited to, real property
taxes, personal property taxes, special taxes, special assessments,
fees, or other charges  .
   SEC. 3.   SEC. 4.   This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.