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<ns0:Description>
<ns0:Id>20250SB__056698AMD</ns0:Id>
<ns0:VersionNum>98</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-20</ns0:ActionDate>
</ns0:Action>
<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-05-01</ns0:ActionDate>
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<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>SB</ns0:MeasureType>
<ns0:MeasureNum>566</ns0:MeasureNum>
<ns0:MeasureState>AMD</ns0:MeasureState>
</ns0:LegislativeInfo>
<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Grove</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_OPPOSITE">(Coauthor: Assembly Member Alanis)</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Grove</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Alanis</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title>An act to amend Sections 218 and 17053.5 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. </ns0:Title>
<ns0:RelatingClause>taxation, to take effect immediately, tax levy</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Real property tax: Personal Income Tax Law: homeowners’ exemption: renter’s credit.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>
(1)
<html:span class="EnSpace"/>
Existing property tax law, pursuant to authority granted by the California Constitution, provides for a homeowners’ exemption in the amount of $7,000 of the full value of a “dwelling,” as defined, and authorizes the Legislature to increase this exemption.
</html:p>
<html:p>This bill, beginning with the lien date for the 2026–27 fiscal year, would increase the homeowners’ exemption, for certain homeowners, from $7,000 to $50,000 of the full value of a dwelling. By imposing additional duties on local tax officials, the bill would impose a state-mandated local program. </html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The California Constitution requires the Legislature, whenever it increases the homeowners’ property tax exemption, to provide a comparable increase in
benefits to qualified renters. The Personal Income Tax Law authorizes various credits against the taxes imposed by that law, including a credit for qualified renters in the amount of $120 for spouses filing joint returns, heads of household, and surviving spouses if adjusted gross income is $50,000 or less, and in the amount of $60 for other individuals if adjusted gross income is $25,000 or less. Existing law requires the Franchise Tax Board to annually adjust for inflation these adjusted gross income amounts.
</html:p>
<html:p>This bill, for taxable years beginning on and after January 1, 2026, would increase this credit for a qualified renter to $550 for spouses filing joint returns, heads of household, and surviving spouses, as specified, if adjusted gross income is $50,000 or less, as adjusted for inflation, and to an amount equal to $275 for other individuals, as specified, if adjusted gross income is $25,000 or less, as adjusted for inflation. </html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
</html:p>
<html:p>This bill would include additional information required for any bill authorizing a new tax expenditure.</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The California Constitution requires the state to reimburse local agencies and school districts for certain costs
mandated by the state. Statutory provisions establish procedures for making that reimbursement.
</html:p>
<html:p>This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.
</html:p>
<html:p>This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
This
bill would take effect immediately as a tax levy.
</html:p>
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<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
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<ns0:ImmediateEffect>YES</ns0:ImmediateEffect>
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<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>YES</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_48CFFEF9-8F01-4B4E-A51E-3E6FD75B7006">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 218 of the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_4CA3051A-E445-4669-B256-1477EE249A43">
<ns0:Num>218.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The homeowners’ property tax exemption is in the amount of the assessed value of the dwelling specified in this section, as authorized by subdivision (k) of Section 3 of Article XIII of the California Constitution. That exemption amount shall be as follows:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Except as provided in paragraph (2), seven thousand dollars ($7,000) of the full value of the dwelling.
</html:p>
<html:p>
(2)
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Beginning with the lien date for the 2026–27 fiscal year, fifty thousand dollars ($50,000) of the full value of the dwelling for a homeowner who is 62 years of age or older.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The exemption does not extend to property that is rented, vacant, under construction on the lien date, or that is a vacation or secondary home of the owner or owners, nor does it apply to property on which an owner receives the veterans’ exemption.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Notwithstanding paragraph (1), if a person receiving the exemption is not occupying the dwelling on the lien date because the dwelling was damaged in a misfortune or calamity, the person shall be deemed to occupy that same dwelling as their principal place of residence on the lien date, provided the person’s absence from the dwelling is temporary and the person intends to return to the dwelling when possible to do so. Except as provided in paragraph (3), when a dwelling has been totally destroyed, and thus no dwelling exists on the lien date, the exemption provided by this section
shall not be applicable until the structure has been replaced and is occupied as a dwelling.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A dwelling that was totally destroyed in a disaster for which the Governor proclaimed a state of emergency, that qualified for the exemption provided by this section prior to the commencement date of the disaster and that has not changed ownership since the commencement date of the disaster, shall be deemed occupied by the person receiving the exemption on the lien date provided the person intends to reconstruct a dwelling on the property and occupy the dwelling as their principal place of residence when it is possible to do so.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Notwithstanding paragraph (1), if a person receiving the exemption is not occupying the dwelling because they are confined to a hospital or other care
facility, the person shall be deemed to occupy that dwelling as their principal place of residence, provided that all of the following conditions are met:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The person would occupy the dwelling if they were not confined to the hospital or other care facility.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The person intends to return to the dwelling when possible to do so.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The dwelling is not rented or leased to a person that is not
described in Section 267(c)(4) of Title 26 of the United States Code.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
For purposes of this section, all of the following apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Owner” includes a person purchasing the dwelling under a contract of sale or who holds shares or membership in a cooperative housing corporation, which holding is a requisite to the exclusive right of occupancy of a dwelling.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
“Dwelling” means a building, structure, or other shelter constituting a place of abode, whether real property or personal property, and any land on which it may be situated. A two-dwelling unit shall be considered as two separate single-family dwellings.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
“Dwelling”
includes the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
A single-family dwelling occupied by an owner thereof as their principal place of residence on the lien date.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
A multiple-dwelling unit occupied by an owner thereof on the lien date as their principal place of residence.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
A condominium occupied by an owner thereof as their principal place of residence on the lien date.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
Premises occupied by the owner of shares or a membership interest in a cooperative housing corporation, as defined in subdivision (i) of Section 61, as their principal place of residence on the lien date. Each exemption allowed pursuant to this subdivision shall be deducted from the total assessed valuation of the
cooperative housing corporation. The exemption shall be taken into account in apportioning property taxes among owners of shares or membership interests in the cooperative housing corporations so as to benefit those owners who qualify for the exemption.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The exemption provided for in subdivision (k) of Section 3 of Article XIII of the California Constitution shall first be applied to the building, structure, or other shelter and the excess, if any, shall be applied to any land on which it may be located.
</html:p>
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<ns0:BillSection id="id_3716E2C6-D74D-4AC7-AF58-235FC941BABF">
<ns0:Num>SEC. 2.</ns0:Num>
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Section 17053.5 of the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_038D30D4-AD9C-473F-9506-E7E0C6B588CE">
<ns0:Num>17053.5.</ns0:Num>
<ns0:LawSectionVersion id="id_53AD578A-97EA-4AEB-882F-0AB25FF63517">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For a qualified renter, there shall be allowed a credit against the renter’s “net tax,” as defined in Section 17039. The amount of the credit shall be as follows:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, the credit shall, except as provided in clause (ii), be equal to one hundred twenty dollars ($120) if adjusted gross income is fifty thousand dollars ($50,000) or less.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
For taxable years beginning on or after January 1, 2026, the credit calculated under this subparagraph shall be increased to
five hundred fifty dollars ($550) if one of the spouses, including the deceased spouse, or the head of household is 62 years of age or older.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
For other individuals, the credit shall, except as provided in clause (ii), be equal to sixty dollars ($60) if adjusted gross income is twenty-five thousand dollars ($25,000) or less.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
For taxable years beginning on or after January 1, 2026, the credit calculated under this subparagraph shall be increased to two hundred seventy-five dollars ($275) if the individual is 62 years of age or older.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Except as provided in subdivision (b), spouses shall receive but one credit under this section. If the spouses file separate returns, the credit may be taken
by either or equally divided between them, except as follows:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
If one spouse was a resident for the entire taxable year and the other spouse was a nonresident for part or all of the taxable year, the resident spouse shall be allowed one-half the credit allowed to married persons and the nonresident spouse shall be permitted one-half the credit allowed to married persons, prorated as provided in subdivision (e).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If both spouses were nonresidents for part of the taxable year, the credit allowed to married persons shall be divided equally between them subject to the proration provided in subdivision (e).
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For spouses, if each spouse maintained a separate place of residence and resided in this state during the entire
taxable year, each spouse will be allowed one-half the full credit allowed to married persons provided in subdivision (a).
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
For purposes of this section, a “qualified renter” means an individual who satisfies both of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Was a resident of this state, as defined in Section 17014.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Rented and occupied premises in this state which constituted the individual’s principal place of residence during at least 50 percent of the taxable year.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
“Qualified renter” does not include any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
An individual who for more than 50 percent of the taxable year rented and occupied
premises that were exempt from property taxes, except that an individual, otherwise qualified, is deemed a qualified renter if the individual or the individual’s landlord pays possessory interest taxes, or the owner of those premises makes payments in lieu of property taxes that are substantially equivalent to property taxes paid on properties of comparable market value.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
An individual whose principal place of residence for more than 50 percent of the taxable year is with another person who claimed that individual as a dependent for income tax purposes.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
An individual who has been granted or whose spouse has been granted the homeowners’ property tax exemption during the taxable year. This paragraph does not apply to an individual whose spouse has been granted the homeowners’
property tax exemption if each spouse maintained a separate residence for the entire taxable year.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
An otherwise qualified renter who is a nonresident for any portion of the taxable year shall claim the credits set forth in subdivision (a) at the rate of one-twelfth of those credits for each full month that individual resided within this state during the taxable year.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
A person claiming the credit provided in this section shall, as part of that claim, and under penalty of perjury, furnish that information as the Franchise Tax Board prescribes on a form supplied by the board.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
The credit provided in this section shall be claimed on returns in the form as the Franchise Tax Board may from time to time prescribe.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
For purposes of this section, “premises” means a house or a dwelling unit used to provide living accommodations in a building or structure and the land incidental thereto, but does not include land only, unless the dwelling unit is a mobilehome. The credit is not allowed for any taxable year for the rental of land upon which a mobilehome is located if the mobilehome has been granted a homeowners’ exemption under Section 218 in that year.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
This section shall become operative on January 1, 1998, and applies to any taxable year beginning on or after January 1, 1998.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
For each taxable year beginning on or after January 1, 1999, the Franchise Tax Board shall recompute the adjusted gross income amounts set forth in
subdivision (a). The computation shall be made as follows:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The Department of Industrial Relations shall transmit annually to the Franchise Tax Board the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current year, no later than August 1 of the current calendar year.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The Franchise Tax Board shall compute an inflation adjustment factor by adding 100 percent to the portion of the percentage change figure which is furnished pursuant to paragraph (1) and dividing the result by 100.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The Franchise Tax Board shall multiply the amount in subparagraph (B) of paragraph (1) of subdivision (a) for the preceding taxable year by the inflation
adjustment factor determined in paragraph (2), and round off the resulting products to the nearest one dollar ($1).
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
In computing the amounts pursuant to this subdivision, the amounts provided in subparagraph (A) of paragraph (1) of subdivision (a) shall be twice the amount provided in subparagraph (B) of paragraph (1) of subdivision (a).
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For the purpose of complying with
Section 41, the Legislature finds and declares the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The specific goal, purpose, and objective of the act adding this subdivision is to expand availability of the existing renter’s credit to compensate low- and middle-income renters 62 years of age or older for the increasing rates of rent throughout the State of California.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The detailed performance indicators for the Legislature to use in determining whether the credit meets the goal, purpose, and objective described in subparagraph (A) is the number of taxpayers who utilized the credit and the average dollar amount of credits claimed.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
To measure whether the credit achieves its intended purpose, for those taxable years for which the amount of credit under clause (ii) of subparagraph (A) and clause (ii) of subparagraph (B) of paragraph (1) of
subdivision (a) applies, the Franchise Tax Board shall prepare a written report on the performance indicators described in subparagraph (B) of paragraph (1).
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The Franchise Tax Board shall provide the written report prepared pursuant to paragraph (2) to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, the Senate and Assembly Committees on Appropriations, and the Senate and Assembly Committees on Revenue and Taxation. The report shall be submitted in compliance with Section 9795 of the Government Code, and no later than May 1, 2027, and each May 1 thereafter.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The disclosure requirements of this subdivision shall be treated as an exception to Section 19542.
</html:p>
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<ns0:BillSection id="id_AE7F807A-7285-4323-A36C-96DBD309C481">
<ns0:Num>SEC. 3.</ns0:Num>
<ns0:Content>
<html:p>If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.</html:p>
</ns0:Content>
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<ns0:BillSection id="id_2E163817-4534-46D8-B7F7-73F8FBF568EC">
<ns0:Num>SEC. 4.</ns0:Num>
<ns0:Content>
<html:p>Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.</html:p>
</ns0:Content>
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<ns0:BillSection id="id_3BD083E2-A96B-4AD7-BC9B-61FD2FF5BAB4">
<ns0:Num>SEC. 5.</ns0:Num>
<ns0:Content>
<html:p>This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.</html:p>
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