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Updated:   2026-02-04

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Measure
Authors Grove  
Coauthors: Alanis  
Subject Real property tax: Personal Income Tax Law: homeowners’ exemption: renter’s credit.
Relating To relating to taxation, to take effect immediately, tax levy.
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.
Last Action Dt 2025-05-01
State Amended Senate
Status Died
Flags
Vote Req Approp Fiscal Cmte Local Prog Subs Chgs Urgency Tax Levy Active?
Majority No Yes Yes None Yes Yes Y
i
Leginfo Link  
Bill Actions
2026-02-02     Returned to Secretary of Senate pursuant to Joint Rule 56.
2025-05-14     May 14 set for first hearing. Failed passage in committee. (Ayes 1. Noes 1. Page 1082.) Reconsideration granted.
2025-05-01     From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
2025-03-18     Set for hearing May 14.
2025-03-05     Referred to Com. on REV. & TAX.
2025-02-21     From printer. May be acted upon on or after March 23.
2025-02-20     Introduced. Read first time. To Com. on RLS. for assignment. To print.
Versions
Amended Senate     2025-05-01
Introduced     2025-02-20
Analyses TBD
Latest Text Bill Full Text
Latest Text Digest

(1) 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.

(2) 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.

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.

(3) 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.

This bill would include additional information required for any bill authorizing a new tax expenditure.

(5) 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.

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.

(6) This bill would take effect immediately as a tax levy.