Asm. Matthew Harper

The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in computing adjusted gross income under that law, including deductions for payments to individual retirement accounts, alimony payments, and interest on educational loans. This bill, for taxable years beginning on or after January 1, 2017, and before January 1, 2022, would allow a deduction in computing adjusted gross income for those amounts paid or incurred by a qualified first-time home buyer, as defined, during the taxable year for qualified home-buying expenses, as provided. This bill would take effect immediately as a tax levy.

Article XIX of the California Constitution restricts the expenditure of revenues from taxes imposed by the state on fuels used in motor vehicles upon public streets and highways to street and highway and certain mass transit purposes. Existing law requires certain miscellaneous revenues deposited in the State Highway Account that are not restricted as to expenditure by Article XIX of the California Constitution to be transferred to the Transportation Debt Service Fund in the State Transportation Fund, as specified, and requires the Controller to transfer from the fund to the General Fund an amount of those revenues necessary to offset the current year debt service made from the General Fund on general obligation transportation bonds issued pursuant to Proposition 116 of 1990. This bill would, on July 1, 2019, delete the transfer of these miscellaneous revenues to the Transportation Debt Service Fund, thereby eliminating the offsetting transfer to the General Fund for debt service on general obligation transportation bonds issued pursuant to Proposition 116 of 1990. The bill, subject to a specified exception, would, on July 1, 2019, instead require the miscellaneous revenues to be retained in the State Highway Account and to be used solely for transportation expenditures consistent with the restrictions for expenditure of fuel tax revenues in Article XIX of the California Constitution. Existing law provides for the deposit of all moneys received by the Department of Motor Vehicles into the Motor Vehicle Account in the State Transportation Fund, which includes some miscellaneous revenues that are not restricted by Article XIX of the California Constitution. Item 2740-011-0044 of Section 2.00 of the Budget Act of 2017, in that regard, requires the Controller to transfer those miscellaneous revenues from the Motor Vehicle Account to the General Fund and estimates the amount of those revenues in the 2016–17 fiscal year at $84,044,000. This bill would repeal the above-referenced item of the Budget Act of 2017. The bill would require the Controller to transfer, from the General Fund to the Motor Vehicle Account, an amount equal to all revenues previously transferred from that account to the General Fund pursuant to this item. The bill, commencing in the 2017–18 fiscal year, would require all revenues in the Motor Vehicle Account that are not protected by Article XIX of the California Constitution to be used solely for transportation expenditures, as specified.

(1) Existing property tax law provides, pursuant to the authority of a specified provision of the California Constitution, 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 2018–19 fiscal year, contingent upon a specified appropriation, would increase the homeowners' exemption from $7,000 to $25,000 of the full value of a dwelling. This bill would also require, for the 2019–20 fiscal year and for each fiscal year thereafter, the county assessor to adjust the amount of the homeowners' exemption by the percentage change in the House Price Index for California for the first 3 quarters of the prior calendar year, as specified. (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 each taxable year beginning on and after January 1, 2018, contingent upon a specified appropriation, would increase this credit for a qualified renter to $428 for spouses filing joint returns, heads of household, and surviving spouses if adjusted gross income is $50,000 or less, as adjusted for inflation, and to an amount equal to $214 for other individuals if adjusted gross income is $25,000 or less, as adjusted for inflation. The bill would also require, for taxable years beginning on or after January 1, 2019, the Franchise Tax Board to annually adjust for inflation, based upon the California Consumer Price Index, the amount of these credits. The bill would also make technical, nonsubstantive changes to the renters' credit. (3) 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 under those provisions for property tax revenues lost by them pursuant to the bill. (4) This bill would take effect immediately as a tax levy.

Existing law prohibits a person from applying for, voting for or attempting to vote, a vote by mail ballot by fraudulently signing the name of a fictitious person, or of a regularly qualified voter, or of a person who is not qualified to vote. Existing law provides that a person who violates the prohibition is guilty of a felony punishable by imprisonment for 16 months or 2 or 3 years, by a fine not exceeding $1,000, or by both that fine and imprisonment. This bill would increase the maximum fine amount from $1,000 to $10,000.

Existing law prescribes the contents of a paper affidavit of registration and requires affidavits of registration to inform voters that they may qualify for confidential voter status, among other requirements. This bill would make technical, nonsubstantive changes to those provisions.

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, as adjusted, or less, and in the amount of $60 for other individuals if adjusted gross income is $25,000, as adjusted, or less. Existing law requires the Franchise Tax Board to annually adjust for inflation these adjusted gross income amounts. For 2016, the adjusted gross income limit is $76,518 and $38,259, respectively. This bill would, for each taxable year beginning on and after January 1, 2017, and before January 1, 2022, contingent upon a specified appropriation, increase this credit for a qualified renter to $240 for spouses filing joint returns, heads of household, and surviving spouses if adjusted gross income is $100,000 or less, and to an amount equal to $120 for other individuals if adjusted gross income is $50,000 or less. The bill would require the Franchise Tax Board to annually adjust the increased adjusted gross income amount for inflation. This bill would take effect immediately as a tax levy.

The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions in computing the income that is subject to the taxes imposed by that law, including miscellaneous itemized deductions that are allowed only to the extent that the aggregate amount of those deductions exceed 2% of adjusted gross income. This bill, for taxable years beginning on or after January 1, 2018, and before January 1, 2023, would allow a deduction, not to exceed $100, under that law for the qualified costs paid or incurred by a taxpayer for the adoption of a qualified pet, as defined, from a qualified animal rescue organization. The bill would make these provisions operative on the effective date of any budget measure that specifically appropriates funds to the Franchise Tax Board for its costs of administering these provisions. This bill would take effect immediately as a tax levy.

Existing law, the Cobey-Porter Saline Water Conversion Law, states the policy of this state that desalination projects developed by or for public water entities be given the same opportunities for state assistance and funding as other water supply and reliability projects, and that desalination be consistent with all applicable environmental protection policies in the state. The law provides that is it the intention of the Legislature that the Department of Water Resources undertake to find economic and efficient methods of desalting saline water so that desalted water may be made available to help meet the growing water requirements of the state. This bill would establish a goal to desalinate 300,000 acre-feet of drinking water per year by the year 2025 and 500,000 acre-feet of drinking water per year by the year 2030.

Existing law, the Porter-Cologne Water Quality Control Act, requires the State Water Resources Control Board to establish uniform statewide recycling criteria for each varying type of use of recycled water if the use involves the protection of public health. The act defines recycling criteria to mean the levels of constituents of recycled water, and the means for assurance of reliability under the design concept that will result in recycled water that is safe for the uses to be made. This bill would make technical, nonsubstantive changes to that definition.

The Political Reform Act of 1974 defines various terms for purposes of the reporting and disclosure requirements of the act. The act defines a controlled committee as a committee that is controlled directly or indirectly by a candidate or state measure proponent or that acts jointly with a candidate, controlled committee, or state measure proponent in connection with the making of expenditures. The act provides that a candidate or state measure proponent controls a committee if he or she, or his or her agent, or any other committee he or she controls has a significant influence on the actions or decisions of the committee. This bill would make technical, nonsubstantive changes to that provision.