Amended in Assembly February 11, 2014

Amended in Assembly June 24, 2013

Amended in Assembly June 12, 2013

Amended in Senate May 14, 2013

Amended in Senate April 9, 2013

Senate Bill No. 339

Introduced by Senator Cannella

(Principal coauthor: Assembly Member Gray)

February 20, 2013

An act to begin delete add Section 25536.3 to the Government Code, relating to local government. end delete begin insert amend Section 17144.5 of the Revenue and Taxation Code, relating to taxation, making an appropriation therefor end insert begin insert . end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 339, as amended, Cannella. begin delete Counties: disposition of real property. end delete begin insert Taxation: cancellation of indebtedness: mortgage debt forgiveness. end insert

begin insert

The Personal Income Tax Law provides for modified conformity to specified provisions of federal income tax law relating to the exclusion of the discharge of qualified principal residence indebtedness, as defined, from an individual’s income if that debt is discharged after January 1, 2007, and before January 1, 2013, as provided. The federal American Taxpayer Relief Act of 2012 extended the operation of those provisions to qualified principal residence indebtedness that is discharged before January 1, 2014.

end insert begin insert

This bill would conform to the federal extension and make legislative findings and declarations regarding the public purpose served by the bill. The bill would also make a continuous appropriation from the General Fund to the Franchise Tax Board in those amounts necessary to make payments to taxpayers who have included in income and paid tax on qualified principal residence indebtedness that was discharged on and after January 1, 2013, and before January 1, 2014.

end insert begin delete

Existing law authorizes the board of supervisors of a county to sell or lease any real property belonging to the county, as specified, provided that the board complies with certain procedural requirements. Existing law authorizes the board to enter into a lease, concession, or managerial contract involving county owned, leased, or managed property for specified purposes without otherwise complying with the existing procedural requirements.

end delete begin delete

This bill would additionally authorize a county to sell or enter into a lease, concession, or managerial contract involving a specified area of county property that the county acquired from the federal government due to the closure of a former military base, without complying with the existing procedural requirements referenced above, as specified.

end delete

Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 17144.5 of the end insert begin insert Revenue and Taxation
Code end insert begin insert is amended to read: end insert

17144.5.  

(a) Section 108(a)(1)(E) of the Internal Revenue
Code, is modified to provide that the amount excluded from gross
income shall not exceed $500,000 ($250,000 in the case of a
married individual filing a separate return).

(b) Section 108(h)(2) of the Internal Revenue Code, is modified
by substituting the phrase “(within the meaning of section
163(h)(3)(B), applied by substituting ‘$800,000 ($400,000’ for
‘$1,000,000 ($500,000’ in clause (ii) thereof)” for the phrase
“(within the meaning of section 163(h)(3)(B), applied by
substituting ‘$2,000,000 ($1,000,000’ for ‘$1,000,000 ($500,000’
in clause (ii) thereof)” contained therein.

(c) This section shall apply to discharges of indebtedness
occurring on or after January 1, 2007, and, notwithstanding any
other law to the contrary, no penalties or interest shall be due with
respect to the discharge of qualified principal residence
indebtedness during the 2007 or 2009 taxable year regardless of
whether or not the taxpayer reports the discharge on his or her
return for the 2007 or 2009 taxable year.

begin insert

(d) The amendments made by Section 202 of the American
Taxpayer Relief Act of 2012 (Public Law 112-240) to Section 108
of the Internal Revenue Code shall apply.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert The amendments made by this act that conform to the
amendments made by Section 202 of the American Taxpayer Relief
Act of 2012 (Public Law 112-240) to Section 108 of the Internal
Revenue Code, apply to qualified principal residence indebtedness
that is discharged on and after January 1, 2013, and before
January 1, 2014. The Legislature declares that the amendments
made by this act and the retroactive application contained in the
preceding sentence are necessary for the public purpose of
conforming state law to the amendments to the Internal Revenue
Code as made by the American Taxpayer Relief Act of 2012 (Public
Law 112-240) and thereby prevent undue hardship to taxpayers
whose qualified principal residence indebtedness was discharged
on and after January 1, 2013, and before January 1, 2014. end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Notwithstanding Section 13340 of the Government
Code, and without regard to fiscal year, there is hereby
continuously appropriated from the General Fund to the Franchise
Tax Board those amounts necessary to make the payments required
by this act to taxpayers who have included amounts in gross income
by reason of the discharge of principal residence indebtedness
that was discharged on and after January 1, 2013, and before
January 1, 2014. end insert

begin delete

  

SECTION 1.  

Section 25536.3 is added to the Government
Code, to read:

25536.3.  

(a) In addition to the authority provided for in Section
25536, and in accordance with subdivision (b), a county, by a
four-fifths vote of the board of supervisors, may sell, or enter into
a lease, concession, or managerial contract involving a specified
area of county property that the county has acquired from the
federal government due to the closure of a military base, without
otherwise complying with this article.

(b) The board shall take an action specified in subdivision (a)
only if the following conditions are met, or if the board makes a
finding in a noticed public hearing that the following conditions
were met at the time the property was acquired from the federal
government:

(1) Reuse of the property is governed solely by the county.

(2) The county has prepared and adopted a general or specific
plan pursuant to Article 5 (commencing with Section 65300) of
Chapter 3 of Division 1 of Title 7 and has adopted a zoning
ordinance for the area, and the proposed use is consistent with that
general or specific plan and the zoning ordinance.

(3) The airport land use commission has prepared and adopted
a comprehensive airport land use plan for the area pursuant to
Article 3.5 (commencing with Section 21670) of Chapter 4 of Part
1 of Division 9 of the Public Utilities Code, and the proposed use
is consistent with that plan.

(4) The county has complied with Article 8 (commencing with
Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5, and
Section 65402 with regard to the property, as provided in Section
25350.1.

(5) The county has given notice pursuant to Section 6062a and
posted the notice in the office of the county clerk. The notice shall
specify the date that the board determines that any of the affected
property shall be subject to this section, and shall include all of
the following:

(A) A description of the property proposed to be sold, leased,
or subject to a concession or managerial contract pursuant to this
section.

(B) The proposed terms of the sale, lease, concession, or
managerial contract.

(C) The location where offers will be accepted and executed.

(D) The telephone number and address of the county officer
responsible for executing the sale, lease, concession, or managerial
contract.

end delete