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| 1 | + | CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1758Introduced by Assembly Member SteinorthJanuary 04, 2018 An act to add Section 17141.5 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 1758, as introduced, Steinorth. Personal income taxes: gross income exclusion: homeownership savings accounts.The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various exclusions from gross income. This bill, on and after January 1, 2018, would exclude from gross income any income earned on the moneys contributed to a homeownership savings account, as described. This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 17141.5 is added to the Revenue and Taxation Code, to read:17141.5. (a) For taxable years beginning on or after January 1, 2018, gross income does not include any income accruing during the taxable year to a homeownership savings account. (b) For purposes of this section:(1) Homeownership savings account means a trust that meets all of the following requirements:(A) Is designated as a homeownership savings account by the trustee for the benefit of any person.(B) Is established by a person, or by persons who are spouses, where the written governing instrument creating the account provides for the following:(i) All contributions to the account are required to be in cash, including any refunds of taxes paid, and can be made by any person.(ii) The account is established to pay, pursuant to the requirements and limitations of this section, for qualified homeownership savings expenses of the person who is the beneficiary of the account.(C) Is, except as otherwise required or authorized by this section, subject to the same requirements and limitations as an individual retirement account established under Section 408 of the Internal Revenue Code, relating to individual retirement accounts, and any regulations adopted thereunder.(D) Is the only homeownership savings account established by the person who established the account.(E) The balance of the homeownership savings account does not exceed the maximum balance established for the account. The maximum balance of a homeownership savings account shall be 20 percent of the median home value within the state, as determined by the Department of Housing and Community Development and posted on its Internet Web site, for the year in which the account is created. The Department of Housing and Community Development shall post the annual median home value on or before ____ 1, 2018, and each ____ 1 thereafter.(2) Person means any individual, or individuals spouse, who had no present ownership interest in a principal residence within the meaning of Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, during the preceding three-year period ending either on the date the homeownership savings account is established or on the date of the individuals, or individuals spouses, purchase of the principal residence for which any amount is withdrawn from the homeownership savings account.(3) Qualified homeownership savings expenses means expenses, including a downpayment or closing costs, paid or incurred in connection with the purchase of a persons principal residence within the meaning of Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, in this state for use by the person who is the beneficiary of the homeownership savings account.(4) Trustee shall have the same meaning as that term has under Section 408 of the Internal Revenue Code, relating to individual retirement accounts, and any regulations adopted thereunder.SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
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| 3 | + | CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1758Introduced by Assembly Member SteinorthJanuary 04, 2018 An act to add Section 17141.5 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 1758, as introduced, Steinorth. Personal income taxes: gross income exclusion: homeownership savings accounts.The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various exclusions from gross income. This bill, on and after January 1, 2018, would exclude from gross income any income earned on the moneys contributed to a homeownership savings account, as described. This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
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| 5 | - | Amended IN Assembly April 03, 2018 | |
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| 7 | - | Amended IN Assembly April 03, 2018 | |
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| 7 | + | ||
| 8 | 8 | ||
| 9 | 9 | CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION | |
| 10 | 10 | ||
| 11 | 11 | Assembly Bill No. 1758 | |
| 12 | 12 | ||
| 13 | 13 | Introduced by Assembly Member SteinorthJanuary 04, 2018 | |
| 14 | 14 | ||
| 15 | 15 | Introduced by Assembly Member Steinorth | |
| 16 | 16 | January 04, 2018 | |
| 17 | 17 | ||
| 18 | 18 | An act to add Section 17141.5 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. | |
| 19 | 19 | ||
| 20 | 20 | LEGISLATIVE COUNSEL'S DIGEST | |
| 21 | 21 | ||
| 22 | 22 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 23 | 23 | ||
| 24 | - | AB 1758, as | |
| 24 | + | AB 1758, as introduced, Steinorth. Personal income taxes: gross income exclusion: homeownership savings accounts. | |
| 25 | 25 | ||
| 26 | - | The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various exclusions from gross income. This bill, on and | |
| 26 | + | The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various exclusions from gross income. This bill, on and after January 1, 2018, would exclude from gross income any income earned on the moneys contributed to a homeownership savings account, as described. This bill would take effect immediately as a tax levy. | |
| 27 | 27 | ||
| 28 | 28 | The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various exclusions from gross income. | |
| 29 | 29 | ||
| 30 | - | This bill, on and | |
| 30 | + | This bill, on and after January 1, 2018, would exclude from gross income any income earned on the moneys contributed to a homeownership savings account, as described. | |
| 31 | 31 | ||
| 32 | 32 | This bill would take effect immediately as a tax levy. | |
| 33 | 33 | ||
| 34 | 34 | ## Digest Key | |
| 35 | 35 | ||
| 36 | 36 | ## Bill Text | |
| 37 | 37 | ||
| 38 | - | The people of the State of California do enact as follows:SECTION 1. Section 17141.5 is added to the Revenue and Taxation Code, to read:17141.5. (a) For taxable years beginning on or after January 1, 2018, gross income does not include any income accruing during the taxable year to a homeownership savings account. (b) For purposes of this section:(1) Homeownership savings account means a trust that meets all of the following requirements:(A) Is designated as a homeownership savings account by the trustee for the benefit of any person.(B) Is established by a person, or by persons who are spouses, where the written governing instrument creating the account provides for the following:(i) All contributions to the account are required to be in cash, including any refunds of taxes paid, and can be made by any person | |
| 38 | + | The people of the State of California do enact as follows:SECTION 1. Section 17141.5 is added to the Revenue and Taxation Code, to read:17141.5. (a) For taxable years beginning on or after January 1, 2018, gross income does not include any income accruing during the taxable year to a homeownership savings account. (b) For purposes of this section:(1) Homeownership savings account means a trust that meets all of the following requirements:(A) Is designated as a homeownership savings account by the trustee for the benefit of any person.(B) Is established by a person, or by persons who are spouses, where the written governing instrument creating the account provides for the following:(i) All contributions to the account are required to be in cash, including any refunds of taxes paid, and can be made by any person.(ii) The account is established to pay, pursuant to the requirements and limitations of this section, for qualified homeownership savings expenses of the person who is the beneficiary of the account.(C) Is, except as otherwise required or authorized by this section, subject to the same requirements and limitations as an individual retirement account established under Section 408 of the Internal Revenue Code, relating to individual retirement accounts, and any regulations adopted thereunder.(D) Is the only homeownership savings account established by the person who established the account.(E) The balance of the homeownership savings account does not exceed the maximum balance established for the account. The maximum balance of a homeownership savings account shall be 20 percent of the median home value within the state, as determined by the Department of Housing and Community Development and posted on its Internet Web site, for the year in which the account is created. The Department of Housing and Community Development shall post the annual median home value on or before ____ 1, 2018, and each ____ 1 thereafter.(2) Person means any individual, or individuals spouse, who had no present ownership interest in a principal residence within the meaning of Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, during the preceding three-year period ending either on the date the homeownership savings account is established or on the date of the individuals, or individuals spouses, purchase of the principal residence for which any amount is withdrawn from the homeownership savings account.(3) Qualified homeownership savings expenses means expenses, including a downpayment or closing costs, paid or incurred in connection with the purchase of a persons principal residence within the meaning of Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, in this state for use by the person who is the beneficiary of the homeownership savings account.(4) Trustee shall have the same meaning as that term has under Section 408 of the Internal Revenue Code, relating to individual retirement accounts, and any regulations adopted thereunder.SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
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| 40 | 40 | The people of the State of California do enact as follows: | |
| 41 | 41 | ||
| 42 | 42 | ## The people of the State of California do enact as follows: | |
| 43 | 43 | ||
| 44 | - | SECTION 1. Section 17141.5 is added to the Revenue and Taxation Code, to read:17141.5. (a) For taxable years beginning on or after January 1, 2018, gross income does not include any income accruing during the taxable year to a homeownership savings account. (b) For purposes of this section:(1) Homeownership savings account means a trust that meets all of the following requirements:(A) Is designated as a homeownership savings account by the trustee for the benefit of any person.(B) Is established by a person, or by persons who are spouses, where the written governing instrument creating the account provides for the following:(i) All contributions to the account are required to be in cash, including any refunds of taxes paid, and can be made by any person | |
| 44 | + | SECTION 1. Section 17141.5 is added to the Revenue and Taxation Code, to read:17141.5. (a) For taxable years beginning on or after January 1, 2018, gross income does not include any income accruing during the taxable year to a homeownership savings account. (b) For purposes of this section:(1) Homeownership savings account means a trust that meets all of the following requirements:(A) Is designated as a homeownership savings account by the trustee for the benefit of any person.(B) Is established by a person, or by persons who are spouses, where the written governing instrument creating the account provides for the following:(i) All contributions to the account are required to be in cash, including any refunds of taxes paid, and can be made by any person.(ii) The account is established to pay, pursuant to the requirements and limitations of this section, for qualified homeownership savings expenses of the person who is the beneficiary of the account.(C) Is, except as otherwise required or authorized by this section, subject to the same requirements and limitations as an individual retirement account established under Section 408 of the Internal Revenue Code, relating to individual retirement accounts, and any regulations adopted thereunder.(D) Is the only homeownership savings account established by the person who established the account.(E) The balance of the homeownership savings account does not exceed the maximum balance established for the account. The maximum balance of a homeownership savings account shall be 20 percent of the median home value within the state, as determined by the Department of Housing and Community Development and posted on its Internet Web site, for the year in which the account is created. The Department of Housing and Community Development shall post the annual median home value on or before ____ 1, 2018, and each ____ 1 thereafter.(2) Person means any individual, or individuals spouse, who had no present ownership interest in a principal residence within the meaning of Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, during the preceding three-year period ending either on the date the homeownership savings account is established or on the date of the individuals, or individuals spouses, purchase of the principal residence for which any amount is withdrawn from the homeownership savings account.(3) Qualified homeownership savings expenses means expenses, including a downpayment or closing costs, paid or incurred in connection with the purchase of a persons principal residence within the meaning of Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, in this state for use by the person who is the beneficiary of the homeownership savings account.(4) Trustee shall have the same meaning as that term has under Section 408 of the Internal Revenue Code, relating to individual retirement accounts, and any regulations adopted thereunder. | |
| 45 | 45 | ||
| 46 | 46 | SECTION 1. Section 17141.5 is added to the Revenue and Taxation Code, to read: | |
| 47 | 47 | ||
| 48 | 48 | ### SECTION 1. | |
| 49 | 49 | ||
| 50 | - | 17141.5. (a) For taxable years beginning on or after January 1, 2018, gross income does not include any income accruing during the taxable year to a homeownership savings account. (b) For purposes of this section:(1) Homeownership savings account means a trust that meets all of the following requirements:(A) Is designated as a homeownership savings account by the trustee for the benefit of any person.(B) Is established by a person, or by persons who are spouses, where the written governing instrument creating the account provides for the following:(i) All contributions to the account are required to be in cash, including any refunds of taxes paid, and can be made by any person | |
| 50 | + | 17141.5. (a) For taxable years beginning on or after January 1, 2018, gross income does not include any income accruing during the taxable year to a homeownership savings account. (b) For purposes of this section:(1) Homeownership savings account means a trust that meets all of the following requirements:(A) Is designated as a homeownership savings account by the trustee for the benefit of any person.(B) Is established by a person, or by persons who are spouses, where the written governing instrument creating the account provides for the following:(i) All contributions to the account are required to be in cash, including any refunds of taxes paid, and can be made by any person.(ii) The account is established to pay, pursuant to the requirements and limitations of this section, for qualified homeownership savings expenses of the person who is the beneficiary of the account.(C) Is, except as otherwise required or authorized by this section, subject to the same requirements and limitations as an individual retirement account established under Section 408 of the Internal Revenue Code, relating to individual retirement accounts, and any regulations adopted thereunder.(D) Is the only homeownership savings account established by the person who established the account.(E) The balance of the homeownership savings account does not exceed the maximum balance established for the account. The maximum balance of a homeownership savings account shall be 20 percent of the median home value within the state, as determined by the Department of Housing and Community Development and posted on its Internet Web site, for the year in which the account is created. The Department of Housing and Community Development shall post the annual median home value on or before ____ 1, 2018, and each ____ 1 thereafter.(2) Person means any individual, or individuals spouse, who had no present ownership interest in a principal residence within the meaning of Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, during the preceding three-year period ending either on the date the homeownership savings account is established or on the date of the individuals, or individuals spouses, purchase of the principal residence for which any amount is withdrawn from the homeownership savings account.(3) Qualified homeownership savings expenses means expenses, including a downpayment or closing costs, paid or incurred in connection with the purchase of a persons principal residence within the meaning of Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, in this state for use by the person who is the beneficiary of the homeownership savings account.(4) Trustee shall have the same meaning as that term has under Section 408 of the Internal Revenue Code, relating to individual retirement accounts, and any regulations adopted thereunder. | |
| 51 | 51 | ||
| 52 | - | 17141.5. (a) For taxable years beginning on or after January 1, 2018, gross income does not include any income accruing during the taxable year to a homeownership savings account. (b) For purposes of this section:(1) Homeownership savings account means a trust that meets all of the following requirements:(A) Is designated as a homeownership savings account by the trustee for the benefit of any person.(B) Is established by a person, or by persons who are spouses, where the written governing instrument creating the account provides for the following:(i) All contributions to the account are required to be in cash, including any refunds of taxes paid, and can be made by any person | |
| 52 | + | 17141.5. (a) For taxable years beginning on or after January 1, 2018, gross income does not include any income accruing during the taxable year to a homeownership savings account. (b) For purposes of this section:(1) Homeownership savings account means a trust that meets all of the following requirements:(A) Is designated as a homeownership savings account by the trustee for the benefit of any person.(B) Is established by a person, or by persons who are spouses, where the written governing instrument creating the account provides for the following:(i) All contributions to the account are required to be in cash, including any refunds of taxes paid, and can be made by any person.(ii) The account is established to pay, pursuant to the requirements and limitations of this section, for qualified homeownership savings expenses of the person who is the beneficiary of the account.(C) Is, except as otherwise required or authorized by this section, subject to the same requirements and limitations as an individual retirement account established under Section 408 of the Internal Revenue Code, relating to individual retirement accounts, and any regulations adopted thereunder.(D) Is the only homeownership savings account established by the person who established the account.(E) The balance of the homeownership savings account does not exceed the maximum balance established for the account. The maximum balance of a homeownership savings account shall be 20 percent of the median home value within the state, as determined by the Department of Housing and Community Development and posted on its Internet Web site, for the year in which the account is created. The Department of Housing and Community Development shall post the annual median home value on or before ____ 1, 2018, and each ____ 1 thereafter.(2) Person means any individual, or individuals spouse, who had no present ownership interest in a principal residence within the meaning of Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, during the preceding three-year period ending either on the date the homeownership savings account is established or on the date of the individuals, or individuals spouses, purchase of the principal residence for which any amount is withdrawn from the homeownership savings account.(3) Qualified homeownership savings expenses means expenses, including a downpayment or closing costs, paid or incurred in connection with the purchase of a persons principal residence within the meaning of Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, in this state for use by the person who is the beneficiary of the homeownership savings account.(4) Trustee shall have the same meaning as that term has under Section 408 of the Internal Revenue Code, relating to individual retirement accounts, and any regulations adopted thereunder. | |
| 53 | 53 | ||
| 54 | - | 17141.5. (a) For taxable years beginning on or after January 1, 2018, gross income does not include any income accruing during the taxable year to a homeownership savings account. (b) For purposes of this section:(1) Homeownership savings account means a trust that meets all of the following requirements:(A) Is designated as a homeownership savings account by the trustee for the benefit of any person.(B) Is established by a person, or by persons who are spouses, where the written governing instrument creating the account provides for the following:(i) All contributions to the account are required to be in cash, including any refunds of taxes paid, and can be made by any person | |
| 54 | + | 17141.5. (a) For taxable years beginning on or after January 1, 2018, gross income does not include any income accruing during the taxable year to a homeownership savings account. (b) For purposes of this section:(1) Homeownership savings account means a trust that meets all of the following requirements:(A) Is designated as a homeownership savings account by the trustee for the benefit of any person.(B) Is established by a person, or by persons who are spouses, where the written governing instrument creating the account provides for the following:(i) All contributions to the account are required to be in cash, including any refunds of taxes paid, and can be made by any person.(ii) The account is established to pay, pursuant to the requirements and limitations of this section, for qualified homeownership savings expenses of the person who is the beneficiary of the account.(C) Is, except as otherwise required or authorized by this section, subject to the same requirements and limitations as an individual retirement account established under Section 408 of the Internal Revenue Code, relating to individual retirement accounts, and any regulations adopted thereunder.(D) Is the only homeownership savings account established by the person who established the account.(E) The balance of the homeownership savings account does not exceed the maximum balance established for the account. The maximum balance of a homeownership savings account shall be 20 percent of the median home value within the state, as determined by the Department of Housing and Community Development and posted on its Internet Web site, for the year in which the account is created. The Department of Housing and Community Development shall post the annual median home value on or before ____ 1, 2018, and each ____ 1 thereafter.(2) Person means any individual, or individuals spouse, who had no present ownership interest in a principal residence within the meaning of Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, during the preceding three-year period ending either on the date the homeownership savings account is established or on the date of the individuals, or individuals spouses, purchase of the principal residence for which any amount is withdrawn from the homeownership savings account.(3) Qualified homeownership savings expenses means expenses, including a downpayment or closing costs, paid or incurred in connection with the purchase of a persons principal residence within the meaning of Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, in this state for use by the person who is the beneficiary of the homeownership savings account.(4) Trustee shall have the same meaning as that term has under Section 408 of the Internal Revenue Code, relating to individual retirement accounts, and any regulations adopted thereunder. | |
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| 57 | 57 | ||
| 58 | 58 | 17141.5. (a) For taxable years beginning on or after January 1, 2018, gross income does not include any income accruing during the taxable year to a homeownership savings account. | |
| 59 | 59 | ||
| 60 | 60 | (b) For purposes of this section: | |
| 61 | 61 | ||
| 62 | 62 | (1) Homeownership savings account means a trust that meets all of the following requirements: | |
| 63 | 63 | ||
| 64 | 64 | (A) Is designated as a homeownership savings account by the trustee for the benefit of any person. | |
| 65 | 65 | ||
| 66 | 66 | (B) Is established by a person, or by persons who are spouses, where the written governing instrument creating the account provides for the following: | |
| 67 | 67 | ||
| 68 | - | (i) All contributions to the account are required to be in cash, including any refunds of taxes paid, and can be made by any person. | |
| 68 | + | (i) All contributions to the account are required to be in cash, including any refunds of taxes paid, and can be made by any person. | |
| 69 | 69 | ||
| 70 | 70 | (ii) The account is established to pay, pursuant to the requirements and limitations of this section, for qualified homeownership savings expenses of the person who is the beneficiary of the account. | |
| 71 | 71 | ||
| 72 | 72 | (C) Is, except as otherwise required or authorized by this section, subject to the same requirements and limitations as an individual retirement account established under Section 408 of the Internal Revenue Code, relating to individual retirement accounts, and any regulations adopted thereunder. | |
| 73 | 73 | ||
| 74 | 74 | (D) Is the only homeownership savings account established by the person who established the account. | |
| 75 | 75 | ||
| 76 | - | (E) The balance of the homeownership savings account does not exceed the maximum balance established for the account. The maximum balance of a homeownership savings account shall be 20 percent of the median home value within the state, as determined by the Department of Housing and Community Development and posted on its Internet Web site, for the year in which the account is created. The Department of Housing and Community Development shall post the annual median home value on or before ____ 1, 2018, and each ____ 1 | |
| 76 | + | (E) The balance of the homeownership savings account does not exceed the maximum balance established for the account. The maximum balance of a homeownership savings account shall be 20 percent of the median home value within the state, as determined by the Department of Housing and Community Development and posted on its Internet Web site, for the year in which the account is created. The Department of Housing and Community Development shall post the annual median home value on or before ____ 1, 2018, and each ____ 1 thereafter. | |
| 77 | 77 | ||
| 78 | 78 | (2) Person means any individual, or individuals spouse, who had no present ownership interest in a principal residence within the meaning of Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, during the preceding three-year period ending either on the date the homeownership savings account is established or on the date of the individuals, or individuals spouses, purchase of the principal residence for which any amount is withdrawn from the homeownership savings account. | |
| 79 | 79 | ||
| 80 | 80 | (3) Qualified homeownership savings expenses means expenses, including a downpayment or closing costs, paid or incurred in connection with the purchase of a persons principal residence within the meaning of Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, in this state for use by the person who is the beneficiary of the homeownership savings account. | |
| 81 | 81 | ||
| 82 | 82 | (4) Trustee shall have the same meaning as that term has under Section 408 of the Internal Revenue Code, relating to individual retirement accounts, and any regulations adopted thereunder. | |
| 83 | 83 | ||
| 84 | 84 | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 85 | 85 | ||
| 86 | 86 | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 87 | 87 | ||
| 88 | 88 | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 89 | 89 | ||
| 90 | 90 | ### SEC. 2. |