CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 566Introduced by Senator GroveFebruary 20, 2025 An act to amend Sections 218 and 17053.5 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTSB 566, as introduced, Grove. Real property tax: Personal Income Tax Law: homeowners exemption: renters credit.(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.This bill, beginning with the lien date for the 202627 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. (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 also would state the intent of the Legislature to comply with that requirement.(4) 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.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.(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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 218 of the Revenue and Taxation Code is amended to read:218. (a) 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 in the amount of seven thousand dollars ($7,000) of the full value of the dwelling. as follows:(1) Except as provided in paragraph (2), seven thousand dollars ($7,000) of the full value of the dwelling.(2) Beginning with the lien date for the 202627 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.(b) (1) 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.(2) 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 persons 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.(3) 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.(4) 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:(A) The person would occupy the dwelling if they were not confined to the hospital or other care facility.(B) The person intends to return to the dwelling when possible to do so.(C) 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.(c) For purposes of this section, all of the following apply:(1) 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.(2) (A) 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.(B) Dwelling includes the following:(i) A single-family dwelling occupied by an owner thereof as their principal place of residence on the lien date.(ii) A multiple-dwelling unit occupied by an owner thereof on the lien date as their principal place of residence.(iii) A condominium occupied by an owner thereof as their principal place of residence on the lien date.(iv) 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.(d) 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.SEC. 2. Section 17053.5 of the Revenue and Taxation Code is amended to read:17053.5. (a) (1) For a qualified renter, there shall be allowed a credit against the renters net tax, as defined in Section 17039. The amount of the credit shall be as follows:(A) (i) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, the credit shall 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.(ii) 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.(B) (i) For other individuals, the credit shall 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.(ii) 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.(2) 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:(A) 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).(B) 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).(b) 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).(c) For purposes of this section, a qualified renter means an individual who satisfies both of the following:(1) Was a resident of this state, as defined in Section 17014.(2) Rented and occupied premises in this state which constituted the individuals principal place of residence during at least 50 percent of the taxable year.(d) Qualified renter does not include any of the following:(1) 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 individuals 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.(2) 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.(3) 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.(e) 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.(f) 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.(g) 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.(h) 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.(i) This section shall become operative on January 1, 1998, and applies to any taxable year beginning on or after January 1, 1998.(j) 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:(1) 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.(2) 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.(3) 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).(4) 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).(k) (1) It is the intent of the Legislature to comply with Section 41.SEC. 3. 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.SEC. 4. 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.SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 566Introduced by Senator GroveFebruary 20, 2025 An act to amend Sections 218 and 17053.5 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTSB 566, as introduced, Grove. Real property tax: Personal Income Tax Law: homeowners exemption: renters credit.(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.This bill, beginning with the lien date for the 202627 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. (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 also would state the intent of the Legislature to comply with that requirement.(4) 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.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.(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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 566
Introduced by Senator GroveFebruary 20, 2025
Introduced by Senator Grove
February 20, 2025
An act to amend Sections 218 and 17053.5 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 566, as introduced, Grove. Real property tax: Personal Income Tax Law: homeowners exemption: renters credit.
(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.This bill, beginning with the lien date for the 202627 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. (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 also would state the intent of the Legislature to comply with that requirement.(4) 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.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.(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.
(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.
This bill, beginning with the lien date for the 202627 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.
(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 also would state the intent of the Legislature to comply with that requirement.
(4) 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.
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.
(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.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 218 of the Revenue and Taxation Code is amended to read:218. (a) 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 in the amount of seven thousand dollars ($7,000) of the full value of the dwelling. as follows:(1) Except as provided in paragraph (2), seven thousand dollars ($7,000) of the full value of the dwelling.(2) Beginning with the lien date for the 202627 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.(b) (1) 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.(2) 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 persons 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.(3) 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.(4) 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:(A) The person would occupy the dwelling if they were not confined to the hospital or other care facility.(B) The person intends to return to the dwelling when possible to do so.(C) 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.(c) For purposes of this section, all of the following apply:(1) 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.(2) (A) 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.(B) Dwelling includes the following:(i) A single-family dwelling occupied by an owner thereof as their principal place of residence on the lien date.(ii) A multiple-dwelling unit occupied by an owner thereof on the lien date as their principal place of residence.(iii) A condominium occupied by an owner thereof as their principal place of residence on the lien date.(iv) 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.(d) 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.SEC. 2. Section 17053.5 of the Revenue and Taxation Code is amended to read:17053.5. (a) (1) For a qualified renter, there shall be allowed a credit against the renters net tax, as defined in Section 17039. The amount of the credit shall be as follows:(A) (i) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, the credit shall 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.(ii) 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.(B) (i) For other individuals, the credit shall 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.(ii) 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.(2) 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:(A) 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).(B) 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).(b) 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).(c) For purposes of this section, a qualified renter means an individual who satisfies both of the following:(1) Was a resident of this state, as defined in Section 17014.(2) Rented and occupied premises in this state which constituted the individuals principal place of residence during at least 50 percent of the taxable year.(d) Qualified renter does not include any of the following:(1) 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 individuals 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.(2) 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.(3) 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.(e) 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.(f) 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.(g) 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.(h) 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.(i) This section shall become operative on January 1, 1998, and applies to any taxable year beginning on or after January 1, 1998.(j) 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:(1) 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.(2) 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.(3) 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).(4) 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).(k) (1) It is the intent of the Legislature to comply with Section 41.SEC. 3. 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.SEC. 4. 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.SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 218 of the Revenue and Taxation Code is amended to read:218. (a) 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 in the amount of seven thousand dollars ($7,000) of the full value of the dwelling. as follows:(1) Except as provided in paragraph (2), seven thousand dollars ($7,000) of the full value of the dwelling.(2) Beginning with the lien date for the 202627 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.(b) (1) 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.(2) 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 persons 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.(3) 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.(4) 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:(A) The person would occupy the dwelling if they were not confined to the hospital or other care facility.(B) The person intends to return to the dwelling when possible to do so.(C) 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.(c) For purposes of this section, all of the following apply:(1) 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.(2) (A) 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.(B) Dwelling includes the following:(i) A single-family dwelling occupied by an owner thereof as their principal place of residence on the lien date.(ii) A multiple-dwelling unit occupied by an owner thereof on the lien date as their principal place of residence.(iii) A condominium occupied by an owner thereof as their principal place of residence on the lien date.(iv) 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.(d) 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.
SECTION 1. Section 218 of the Revenue and Taxation Code is amended to read:
### SECTION 1.
218. (a) 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 in the amount of seven thousand dollars ($7,000) of the full value of the dwelling. as follows:(1) Except as provided in paragraph (2), seven thousand dollars ($7,000) of the full value of the dwelling.(2) Beginning with the lien date for the 202627 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.(b) (1) 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.(2) 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 persons 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.(3) 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.(4) 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:(A) The person would occupy the dwelling if they were not confined to the hospital or other care facility.(B) The person intends to return to the dwelling when possible to do so.(C) 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.(c) For purposes of this section, all of the following apply:(1) 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.(2) (A) 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.(B) Dwelling includes the following:(i) A single-family dwelling occupied by an owner thereof as their principal place of residence on the lien date.(ii) A multiple-dwelling unit occupied by an owner thereof on the lien date as their principal place of residence.(iii) A condominium occupied by an owner thereof as their principal place of residence on the lien date.(iv) 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.(d) 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.
218. (a) 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 in the amount of seven thousand dollars ($7,000) of the full value of the dwelling. as follows:(1) Except as provided in paragraph (2), seven thousand dollars ($7,000) of the full value of the dwelling.(2) Beginning with the lien date for the 202627 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.(b) (1) 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.(2) 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 persons 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.(3) 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.(4) 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:(A) The person would occupy the dwelling if they were not confined to the hospital or other care facility.(B) The person intends to return to the dwelling when possible to do so.(C) 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.(c) For purposes of this section, all of the following apply:(1) 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.(2) (A) 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.(B) Dwelling includes the following:(i) A single-family dwelling occupied by an owner thereof as their principal place of residence on the lien date.(ii) A multiple-dwelling unit occupied by an owner thereof on the lien date as their principal place of residence.(iii) A condominium occupied by an owner thereof as their principal place of residence on the lien date.(iv) 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.(d) 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.
218. (a) 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 in the amount of seven thousand dollars ($7,000) of the full value of the dwelling. as follows:(1) Except as provided in paragraph (2), seven thousand dollars ($7,000) of the full value of the dwelling.(2) Beginning with the lien date for the 202627 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.(b) (1) 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.(2) 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 persons 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.(3) 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.(4) 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:(A) The person would occupy the dwelling if they were not confined to the hospital or other care facility.(B) The person intends to return to the dwelling when possible to do so.(C) 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.(c) For purposes of this section, all of the following apply:(1) 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.(2) (A) 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.(B) Dwelling includes the following:(i) A single-family dwelling occupied by an owner thereof as their principal place of residence on the lien date.(ii) A multiple-dwelling unit occupied by an owner thereof on the lien date as their principal place of residence.(iii) A condominium occupied by an owner thereof as their principal place of residence on the lien date.(iv) 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.(d) 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.
218. (a) 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 in the amount of seven thousand dollars ($7,000) of the full value of the dwelling. as follows:
(1) Except as provided in paragraph (2), seven thousand dollars ($7,000) of the full value of the dwelling.
(2) Beginning with the lien date for the 202627 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.
(b) (1) 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.
(2) 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 persons 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.
(3) 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.
(4) 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:
(A) The person would occupy the dwelling if they were not confined to the hospital or other care facility.
(B) The person intends to return to the dwelling when possible to do so.
(C) 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.
(c) For purposes of this section, all of the following apply:
(1) 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.
(2) (A) 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.
(B) Dwelling includes the following:
(i) A single-family dwelling occupied by an owner thereof as their principal place of residence on the lien date.
(ii) A multiple-dwelling unit occupied by an owner thereof on the lien date as their principal place of residence.
(iii) A condominium occupied by an owner thereof as their principal place of residence on the lien date.
(iv) 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.
(d) 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.
SEC. 2. Section 17053.5 of the Revenue and Taxation Code is amended to read:17053.5. (a) (1) For a qualified renter, there shall be allowed a credit against the renters net tax, as defined in Section 17039. The amount of the credit shall be as follows:(A) (i) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, the credit shall 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.(ii) 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.(B) (i) For other individuals, the credit shall 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.(ii) 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.(2) 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:(A) 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).(B) 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).(b) 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).(c) For purposes of this section, a qualified renter means an individual who satisfies both of the following:(1) Was a resident of this state, as defined in Section 17014.(2) Rented and occupied premises in this state which constituted the individuals principal place of residence during at least 50 percent of the taxable year.(d) Qualified renter does not include any of the following:(1) 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 individuals 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.(2) 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.(3) 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.(e) 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.(f) 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.(g) 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.(h) 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.(i) This section shall become operative on January 1, 1998, and applies to any taxable year beginning on or after January 1, 1998.(j) 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:(1) 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.(2) 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.(3) 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).(4) 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).(k) (1) It is the intent of the Legislature to comply with Section 41.
SEC. 2. Section 17053.5 of the Revenue and Taxation Code is amended to read:
### SEC. 2.
17053.5. (a) (1) For a qualified renter, there shall be allowed a credit against the renters net tax, as defined in Section 17039. The amount of the credit shall be as follows:(A) (i) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, the credit shall 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.(ii) 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.(B) (i) For other individuals, the credit shall 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.(ii) 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.(2) 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:(A) 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).(B) 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).(b) 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).(c) For purposes of this section, a qualified renter means an individual who satisfies both of the following:(1) Was a resident of this state, as defined in Section 17014.(2) Rented and occupied premises in this state which constituted the individuals principal place of residence during at least 50 percent of the taxable year.(d) Qualified renter does not include any of the following:(1) 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 individuals 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.(2) 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.(3) 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.(e) 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.(f) 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.(g) 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.(h) 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.(i) This section shall become operative on January 1, 1998, and applies to any taxable year beginning on or after January 1, 1998.(j) 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:(1) 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.(2) 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.(3) 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).(4) 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).(k) (1) It is the intent of the Legislature to comply with Section 41.
17053.5. (a) (1) For a qualified renter, there shall be allowed a credit against the renters net tax, as defined in Section 17039. The amount of the credit shall be as follows:(A) (i) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, the credit shall 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.(ii) 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.(B) (i) For other individuals, the credit shall 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.(ii) 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.(2) 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:(A) 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).(B) 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).(b) 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).(c) For purposes of this section, a qualified renter means an individual who satisfies both of the following:(1) Was a resident of this state, as defined in Section 17014.(2) Rented and occupied premises in this state which constituted the individuals principal place of residence during at least 50 percent of the taxable year.(d) Qualified renter does not include any of the following:(1) 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 individuals 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.(2) 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.(3) 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.(e) 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.(f) 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.(g) 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.(h) 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.(i) This section shall become operative on January 1, 1998, and applies to any taxable year beginning on or after January 1, 1998.(j) 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:(1) 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.(2) 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.(3) 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).(4) 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).(k) (1) It is the intent of the Legislature to comply with Section 41.
17053.5. (a) (1) For a qualified renter, there shall be allowed a credit against the renters net tax, as defined in Section 17039. The amount of the credit shall be as follows:(A) (i) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, the credit shall 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.(ii) 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.(B) (i) For other individuals, the credit shall 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.(ii) 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.(2) 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:(A) 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).(B) 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).(b) 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).(c) For purposes of this section, a qualified renter means an individual who satisfies both of the following:(1) Was a resident of this state, as defined in Section 17014.(2) Rented and occupied premises in this state which constituted the individuals principal place of residence during at least 50 percent of the taxable year.(d) Qualified renter does not include any of the following:(1) 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 individuals 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.(2) 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.(3) 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.(e) 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.(f) 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.(g) 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.(h) 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.(i) This section shall become operative on January 1, 1998, and applies to any taxable year beginning on or after January 1, 1998.(j) 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:(1) 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.(2) 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.(3) 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).(4) 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).(k) (1) It is the intent of the Legislature to comply with Section 41.
17053.5. (a) (1) For a qualified renter, there shall be allowed a credit against the renters net tax, as defined in Section 17039. The amount of the credit shall be as follows:
(A) (i) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, the credit shall 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.
(ii) 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.
(B) (i) For other individuals, the credit shall 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.
(ii) 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.
(2) 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:
(A) 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).
(B) 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).
(b) 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).
(c) For purposes of this section, a qualified renter means an individual who satisfies both of the following:
(1) Was a resident of this state, as defined in Section 17014.
(2) Rented and occupied premises in this state which constituted the individuals principal place of residence during at least 50 percent of the taxable year.
(d) Qualified renter does not include any of the following:
(1) 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 individuals 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.
(2) 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.
(3) 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.
(e) 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.
(f) 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.
(g) 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.
(h) 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.
(i) This section shall become operative on January 1, 1998, and applies to any taxable year beginning on or after January 1, 1998.
(j) 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:
(1) 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.
(2) 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.
(3) 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).
(4) 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).
(k) (1) It is the intent of the Legislature to comply with Section 41.
SEC. 3. 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.
SEC. 3. 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.
SEC. 3. 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.
### SEC. 3.
SEC. 4. 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.
SEC. 4. 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.
SEC. 4. 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.
### SEC. 4.
SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
### SEC. 5.