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| 1 | + | Amended IN Assembly April 30, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1317Introduced by Assembly Member BroughFebruary 22, 2019 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 1317, as amended, Brough. 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 or after January 1, 2019, would exclude from gross income any income earned on the moneys contributed to a homeownership savings account, as described. subject to specified restrictions, including that the account is designated as a homeownership savings account by the trustee for the benefit of a qualified taxpayer, as defined, and that the account is closed once the purchase of the qualified taxpayers principal residence is complete.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, 2019, gross income does not include any income earned 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. qualified taxpayer.(B) Is established by a person, or by persons who are spouses, qualified taxpayer 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, including, but not limited to, contributions from relatives, employers, or crowdfunding internet websites.(ii) The account is established to pay, pursuant to the requirements and limitations of this section, for qualified homeownership savings expenses of the person qualified taxpayer 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 qualified taxpayer 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 website, 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 January 1, 2019, and each January 1 thereafter.(F) Is established by a qualified taxpayer whose gross income, for the taxable year in which the account is established, does not exceed 80 percent of the area median income of a city and county. A qualified taxpayer shall contribute to a homeownership savings account only in the taxable years in which the qualified taxpayers gross income does not exceed 80 percent of the area median income of a city and county.(G) Is closed once the purchase of a principal residence within the meaning of Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, is complete.(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)(2) Qualified homeownership savings expenses means expenses, including a downpayment or closing costs, the downpayment and closing costs paid or incurred in connection with the purchase of a persons qualified taxpayers 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 qualified taxpayer who is the beneficiary of the homeownership savings account.(3) Qualified taxpayer means any individual, individuals spouse, or individuals who are spouses filing jointly, who have never had an 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.(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. | |
| 2 | 2 | ||
| 3 | - | ||
| 3 | + | Amended IN Assembly April 30, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1317Introduced by Assembly Member BroughFebruary 22, 2019 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 1317, as amended, Brough. 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 or after January 1, 2019, would exclude from gross income any income earned on the moneys contributed to a homeownership savings account, as described. subject to specified restrictions, including that the account is designated as a homeownership savings account by the trustee for the benefit of a qualified taxpayer, as defined, and that the account is closed once the purchase of the qualified taxpayers principal residence is complete.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
| 4 | 4 | ||
| 5 | - | ||
| 5 | + | Amended IN Assembly April 30, 2019 | |
| 6 | 6 | ||
| 7 | - | Amended IN Assembly May 08, 2019 | |
| 8 | 7 | Amended IN Assembly April 30, 2019 | |
| 9 | 8 | ||
| 10 | 9 | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION | |
| 11 | 10 | ||
| 12 | 11 | Assembly Bill No. 1317 | |
| 13 | 12 | ||
| 14 | 13 | Introduced by Assembly Member BroughFebruary 22, 2019 | |
| 15 | 14 | ||
| 16 | 15 | Introduced by Assembly Member Brough | |
| 17 | 16 | February 22, 2019 | |
| 18 | 17 | ||
| 19 | - | An act to add | |
| 18 | + | An act to add Section 17141.5 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. | |
| 20 | 19 | ||
| 21 | 20 | LEGISLATIVE COUNSEL'S DIGEST | |
| 22 | 21 | ||
| 23 | 22 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 24 | 23 | ||
| 25 | 24 | AB 1317, as amended, Brough. Personal income taxes: gross income exclusion: homeownership savings accounts. | |
| 26 | 25 | ||
| 27 | - | The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various exclusions from gross income. This bill, on or after January 1, 2019, | |
| 26 | + | The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various exclusions from gross income. This bill, on or after January 1, 2019, would exclude from gross income any income earned on the moneys contributed to a homeownership savings account, as described. subject to specified restrictions, including that the account is designated as a homeownership savings account by the trustee for the benefit of a qualified taxpayer, as defined, and that the account is closed once the purchase of the qualified taxpayers principal residence is complete.This bill would take effect immediately as a tax levy. | |
| 28 | 27 | ||
| 29 | 28 | The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various exclusions from gross income. | |
| 30 | 29 | ||
| 31 | - | This bill, on or after January 1, 2019 | |
| 30 | + | This bill, on or after January 1, 2019, would exclude from gross income any income earned on the moneys contributed to a homeownership savings account, as described. subject to specified restrictions, including that the account is designated as a homeownership savings account by the trustee for the benefit of a qualified taxpayer, as defined, and that the account is closed once the purchase of the qualified taxpayers principal residence is complete. | |
| 32 | 31 | ||
| 33 | 32 | This bill would take effect immediately as a tax levy. | |
| 34 | 33 | ||
| 35 | 34 | ## Digest Key | |
| 36 | 35 | ||
| 37 | 36 | ## Bill Text | |
| 38 | 37 | ||
| 39 | - | 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, 2019, | |
| 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, 2019, gross income does not include any income earned 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. qualified taxpayer.(B) Is established by a person, or by persons who are spouses, qualified taxpayer 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, including, but not limited to, contributions from relatives, employers, or crowdfunding internet websites.(ii) The account is established to pay, pursuant to the requirements and limitations of this section, for qualified homeownership savings expenses of the person qualified taxpayer 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 qualified taxpayer 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 website, 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 January 1, 2019, and each January 1 thereafter.(F) Is established by a qualified taxpayer whose gross income, for the taxable year in which the account is established, does not exceed 80 percent of the area median income of a city and county. A qualified taxpayer shall contribute to a homeownership savings account only in the taxable years in which the qualified taxpayers gross income does not exceed 80 percent of the area median income of a city and county.(G) Is closed once the purchase of a principal residence within the meaning of Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, is complete.(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)(2) Qualified homeownership savings expenses means expenses, including a downpayment or closing costs, the downpayment and closing costs paid or incurred in connection with the purchase of a persons qualified taxpayers 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 qualified taxpayer who is the beneficiary of the homeownership savings account.(3) Qualified taxpayer means any individual, individuals spouse, or individuals who are spouses filing jointly, who have never had an 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.(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. | |
| 40 | 39 | ||
| 41 | 40 | The people of the State of California do enact as follows: | |
| 42 | 41 | ||
| 43 | 42 | ## The people of the State of California do enact as follows: | |
| 44 | 43 | ||
| 45 | - | 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, 2019, | |
| 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, 2019, gross income does not include any income earned 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. qualified taxpayer.(B) Is established by a person, or by persons who are spouses, qualified taxpayer 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, including, but not limited to, contributions from relatives, employers, or crowdfunding internet websites.(ii) The account is established to pay, pursuant to the requirements and limitations of this section, for qualified homeownership savings expenses of the person qualified taxpayer 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 qualified taxpayer 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 website, 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 January 1, 2019, and each January 1 thereafter.(F) Is established by a qualified taxpayer whose gross income, for the taxable year in which the account is established, does not exceed 80 percent of the area median income of a city and county. A qualified taxpayer shall contribute to a homeownership savings account only in the taxable years in which the qualified taxpayers gross income does not exceed 80 percent of the area median income of a city and county.(G) Is closed once the purchase of a principal residence within the meaning of Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, is complete.(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)(2) Qualified homeownership savings expenses means expenses, including a downpayment or closing costs, the downpayment and closing costs paid or incurred in connection with the purchase of a persons qualified taxpayers 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 qualified taxpayer who is the beneficiary of the homeownership savings account.(3) Qualified taxpayer means any individual, individuals spouse, or individuals who are spouses filing jointly, who have never had an 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.(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. | |
| 46 | 45 | ||
| 47 | 46 | SECTION 1. Section 17141.5 is added to the Revenue and Taxation Code, to read: | |
| 48 | 47 | ||
| 49 | 48 | ### SECTION 1. | |
| 50 | 49 | ||
| 51 | - | 17141.5. (a) For taxable years beginning on or after January 1, 2019, | |
| 50 | + | 17141.5. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any income earned 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. qualified taxpayer.(B) Is established by a person, or by persons who are spouses, qualified taxpayer 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, including, but not limited to, contributions from relatives, employers, or crowdfunding internet websites.(ii) The account is established to pay, pursuant to the requirements and limitations of this section, for qualified homeownership savings expenses of the person qualified taxpayer 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 qualified taxpayer 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 website, 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 January 1, 2019, and each January 1 thereafter.(F) Is established by a qualified taxpayer whose gross income, for the taxable year in which the account is established, does not exceed 80 percent of the area median income of a city and county. A qualified taxpayer shall contribute to a homeownership savings account only in the taxable years in which the qualified taxpayers gross income does not exceed 80 percent of the area median income of a city and county.(G) Is closed once the purchase of a principal residence within the meaning of Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, is complete.(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)(2) Qualified homeownership savings expenses means expenses, including a downpayment or closing costs, the downpayment and closing costs paid or incurred in connection with the purchase of a persons qualified taxpayers 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 qualified taxpayer who is the beneficiary of the homeownership savings account.(3) Qualified taxpayer means any individual, individuals spouse, or individuals who are spouses filing jointly, who have never had an 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.(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. | |
| 52 | 51 | ||
| 53 | - | 17141.5. (a) For taxable years beginning on or after January 1, 2019, | |
| 52 | + | 17141.5. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any income earned 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. qualified taxpayer.(B) Is established by a person, or by persons who are spouses, qualified taxpayer 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, including, but not limited to, contributions from relatives, employers, or crowdfunding internet websites.(ii) The account is established to pay, pursuant to the requirements and limitations of this section, for qualified homeownership savings expenses of the person qualified taxpayer 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 qualified taxpayer 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 website, 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 January 1, 2019, and each January 1 thereafter.(F) Is established by a qualified taxpayer whose gross income, for the taxable year in which the account is established, does not exceed 80 percent of the area median income of a city and county. A qualified taxpayer shall contribute to a homeownership savings account only in the taxable years in which the qualified taxpayers gross income does not exceed 80 percent of the area median income of a city and county.(G) Is closed once the purchase of a principal residence within the meaning of Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, is complete.(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)(2) Qualified homeownership savings expenses means expenses, including a downpayment or closing costs, the downpayment and closing costs paid or incurred in connection with the purchase of a persons qualified taxpayers 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 qualified taxpayer who is the beneficiary of the homeownership savings account.(3) Qualified taxpayer means any individual, individuals spouse, or individuals who are spouses filing jointly, who have never had an 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.(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. | |
| 54 | 53 | ||
| 55 | - | 17141.5. (a) For taxable years beginning on or after January 1, 2019, | |
| 54 | + | 17141.5. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any income earned 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. qualified taxpayer.(B) Is established by a person, or by persons who are spouses, qualified taxpayer 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, including, but not limited to, contributions from relatives, employers, or crowdfunding internet websites.(ii) The account is established to pay, pursuant to the requirements and limitations of this section, for qualified homeownership savings expenses of the person qualified taxpayer 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 qualified taxpayer 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 website, 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 January 1, 2019, and each January 1 thereafter.(F) Is established by a qualified taxpayer whose gross income, for the taxable year in which the account is established, does not exceed 80 percent of the area median income of a city and county. A qualified taxpayer shall contribute to a homeownership savings account only in the taxable years in which the qualified taxpayers gross income does not exceed 80 percent of the area median income of a city and county.(G) Is closed once the purchase of a principal residence within the meaning of Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, is complete.(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)(2) Qualified homeownership savings expenses means expenses, including a downpayment or closing costs, the downpayment and closing costs paid or incurred in connection with the purchase of a persons qualified taxpayers 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 qualified taxpayer who is the beneficiary of the homeownership savings account.(3) Qualified taxpayer means any individual, individuals spouse, or individuals who are spouses filing jointly, who have never had an 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.(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. | |
| 56 | 55 | ||
| 57 | 56 | ||
| 58 | 57 | ||
| 59 | - | 17141.5. (a) For taxable years beginning on or after January 1, 2019, | |
| 58 | + | 17141.5. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any income earned during the taxable year to a homeownership savings account. | |
| 60 | 59 | ||
| 61 | 60 | (b) For purposes of this section: | |
| 62 | 61 | ||
| 63 | 62 | (1) Homeownership savings account means a trust that meets all of the following requirements: | |
| 64 | 63 | ||
| 65 | - | (A) Is designated as a homeownership savings account by the trustee for the benefit of any qualified taxpayer. | |
| 64 | + | (A) Is designated as a homeownership savings account by the trustee for the benefit of any person. qualified taxpayer. | |
| 66 | 65 | ||
| 67 | - | (B) Is established by a qualified taxpayer where the written governing instrument creating the account provides for the following: | |
| 66 | + | (B) Is established by a person, or by persons who are spouses, qualified taxpayer where the written governing instrument creating the account provides for the following: | |
| 68 | 67 | ||
| 69 | 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, including, but not limited to, contributions from relatives, employers, or crowdfunding internet websites. | |
| 70 | 69 | ||
| 71 | - | (ii) The account is established to pay, pursuant to the requirements and limitations of this section, for qualified homeownership savings expenses of the qualified taxpayer who is the beneficiary of the account. | |
| 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 qualified taxpayer who is the beneficiary of the account. | |
| 72 | 71 | ||
| 73 | 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. | |
| 74 | 73 | ||
| 75 | - | (D) Is the only homeownership savings account established by the qualified taxpayer who established the account. | |
| 74 | + | (D) Is the only homeownership savings account established by the person qualified taxpayer who established the account. | |
| 76 | 75 | ||
| 77 | - | (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 | |
| 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 website, 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 January 1, 2019, and each January 1 thereafter. | |
| 78 | 77 | ||
| 79 | 78 | (F) Is established by a qualified taxpayer whose gross income, for the taxable year in which the account is established, does not exceed 80 percent of the area median income of a city and county. A qualified taxpayer shall contribute to a homeownership savings account only in the taxable years in which the qualified taxpayers gross income does not exceed 80 percent of the area median income of a city and county. | |
| 80 | 79 | ||
| 81 | 80 | (G) Is closed once the purchase of a principal residence within the meaning of Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, is complete. | |
| 82 | 81 | ||
| 83 | - | (2) Qualified homeownership savings expenses means the downpayment and closing costs paid or incurred in connection with the purchase of a qualified taxpayers 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 qualified taxpayer who is the beneficiary of the homeownership savings account. | |
| 82 | + | (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. | |
| 83 | + | ||
| 84 | + | ||
| 85 | + | ||
| 86 | + | (3) | |
| 87 | + | ||
| 88 | + | ||
| 89 | + | ||
| 90 | + | (2) Qualified homeownership savings expenses means expenses, including a downpayment or closing costs, the downpayment and closing costs paid or incurred in connection with the purchase of a persons qualified taxpayers 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 qualified taxpayer who is the beneficiary of the homeownership savings account. | |
| 84 | 91 | ||
| 85 | 92 | (3) Qualified taxpayer means any individual, individuals spouse, or individuals who are spouses filing jointly, who have never had an 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. | |
| 86 | 93 | ||
| 87 | 94 | (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. | |
| 88 | 95 | ||
| 89 | - | ||
| 96 | + | 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. | |
| 90 | 97 | ||
| 91 | - | SEC. 2. | |
| 98 | + | 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. | |
| 92 | 99 | ||
| 93 | - | SEC. 2. It is the intent of the Legislature to apply the requirements of Section 41 of the Revenue and Taxation Code to this act. With respect to Section 17141.5 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares the following:(a) The specific goals, purposes, and objectives of the tax exclusion allowed by Section 17141.5 of the Revenue and Taxation Code, as added by this act, are as follows:(1) Create a homeownership savings account to help first-time homebuyers save money to make a down payment or pay for closing costs on a new home.(2) Increase the number of homeowners in California.(b) Detailed performance indicators for the Legislature to use in determining whether the tax exclusion allowed by Section 17141.5 of the Revenue and Taxation Code, as added by this act, meets the goals, purposes, and objectives described in subdivision (a) are as follows:(1) The number of first-time homebuyers taking advantage of the tax exclusion.(2) The homeownership rates in California.(c) The data collection requirements for the tax exclusion allowed by Section 17141.5 of the Revenue and Taxation Code, as added by this act, are as follows:(1) On or before December 1, 2025, the Legislative Analyst shall submit a report to the Legislature on the effectiveness of the tax exclusion allowed by Section 17141.5 of the Revenue and Taxation Code, as added by this act. The report shall include, but is not limited to, an analysis of the number of first-time homebuyers taking advantage of the exclusion and the impact of the tax exclusion on the homeownership rates in California. The report shall be submitted in compliance with Section 9795 of the Government Code.(2) The Legislative Analyst may request information from the Franchise Tax Board for the purposes of this subdivision.(3) The Franchise Tax Board shall provide any data requested by the Legislative Analyst pursuant to this subdivision. | |
| 94 | - | ||
| 95 | - | SEC. 2. It is the intent of the Legislature to apply the requirements of Section 41 of the Revenue and Taxation Code to this act. With respect to Section 17141.5 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares the following: | |
| 100 | + | 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. | |
| 96 | 101 | ||
| 97 | 102 | ### SEC. 2. | |
| 98 | - | ||
| 99 | - | (a) The specific goals, purposes, and objectives of the tax exclusion allowed by Section 17141.5 of the Revenue and Taxation Code, as added by this act, are as follows: | |
| 100 | - | ||
| 101 | - | (1) Create a homeownership savings account to help first-time homebuyers save money to make a down payment or pay for closing costs on a new home. | |
| 102 | - | ||
| 103 | - | (2) Increase the number of homeowners in California. | |
| 104 | - | ||
| 105 | - | (b) Detailed performance indicators for the Legislature to use in determining whether the tax exclusion allowed by Section 17141.5 of the Revenue and Taxation Code, as added by this act, meets the goals, purposes, and objectives described in subdivision (a) are as follows: | |
| 106 | - | ||
| 107 | - | (1) The number of first-time homebuyers taking advantage of the tax exclusion. | |
| 108 | - | ||
| 109 | - | (2) The homeownership rates in California. | |
| 110 | - | ||
| 111 | - | (c) The data collection requirements for the tax exclusion allowed by Section 17141.5 of the Revenue and Taxation Code, as added by this act, are as follows: | |
| 112 | - | ||
| 113 | - | (1) On or before December 1, 2025, the Legislative Analyst shall submit a report to the Legislature on the effectiveness of the tax exclusion allowed by Section 17141.5 of the Revenue and Taxation Code, as added by this act. The report shall include, but is not limited to, an analysis of the number of first-time homebuyers taking advantage of the exclusion and the impact of the tax exclusion on the homeownership rates in California. The report shall be submitted in compliance with Section 9795 of the Government Code. | |
| 114 | - | ||
| 115 | - | (2) The Legislative Analyst may request information from the Franchise Tax Board for the purposes of this subdivision. | |
| 116 | - | ||
| 117 | - | (3) The Franchise Tax Board shall provide any data requested by the Legislative Analyst pursuant to this subdivision. | |
| 118 | - | ||
| 119 | - | SEC. 2.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 120 | - | ||
| 121 | - | SEC. 2.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 122 | - | ||
| 123 | - | SEC. 2.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 124 | - | ||
| 125 | - | ### SEC. 2.SEC. 3. |