California Homeowners and Renters Tax Credit Initiative (2018)

California Homeowners and Renters Tax Credit Initiative
Election date November 6, 2018
Topic Taxes and Housing
Status Not on the ballot
Type State statute	Origin Citizens
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The California Homeowners and Renters Tax Credit Initiative (#17-0032) was not on the ballot in California as an initiated state statute on November 6, 2018.

The measure would have created a $500 annual tax credit for qualified homeowners and renters in California. The measure would have allowed homeowners who are not residing in the state for a full taxable year to claim the tax credit at the rate of one-twelfth for each month the homeowner lives in California. The tax credit amount would have been adjusted each year based on changes in the California Consumer Price Index.

Proponents withdrew the initiative on January 17, 2018.

Text of measure

Ballot title

The official ballot title was as follows:

“

Establishes a Tax Credit for Homeowners and a Supplemental Tax Credit for Renters in California. Initiative Statute.

”

Petition summary

The summary provided for inclusion on signature petition sheets was as follows:

“

Establishes a $500 tax credit for homeowners who are eligible for the existing homeowner’s property tax exemption. Establishes a $500 supplemental tax credit for renters who are eligible for the existing renter’s credit. Applies credits per person for unmarried individuals and per couple for married individuals, without regard to the taxpayers’ income amount. If homeowners or renters are nonresidents for any portion of the taxable year, the credit is proportionally reduced. Provides for annual inflation adjustments to tax credit.

”

Fiscal impact

Note: The fiscal impact statement for a California ballot initiative authorized for circulation is prepared by the state's legislative analyst and director of finance.

The fiscal impact statement was as follows:

“

Reduction in state revenue of roughly $4 billion per year. Likely a reduction in funding for schools and community colleges of roughly $2 billion in most years.

”

Full text

The full text of the measure was as follows:

The Homeowners and Renters Tax Credit Act of 2018 Section 1. Declaration of Findings and Statement of Purpose A. The cost of housing in California is a crisis that demands immediate action. Currently, California is building only half of the 180,000 housing units we annually need simply to keep pace with demand. B. The dream of home ownership and the ability to create middle-class wealth is out of reach for many of our citizens. One-third of California residents cannot afford a median priced home. A median priced home in the state is currently 200 percent higher than the national average. C. For those who choose to rent, they are finding it harder and harder to find affordable housing in locations close to where they work or where their children can attend a quality school. One-third of California renters spend at least half of their take-home pay on housing. D. Despite this, state and local politicians continue to pile on new taxes, fees, bond debt, and assessments on homeowners and apartment owners, who pass these costs on to their tenants. E. California remains one of the most heavily taxed states in America. State and local government revenue increases have far exceeded both inflation and population growth. F. In 1974, voters approved a homeowner's property tax exemption and authorized the Legislature to increase that exemption to keep up with the price of homes. Not one increase has been approved by the Legislature. The amount is just $70 per year for homeowners. G. In 1991, a tax credit for renters was created and the Legislature was authorized to increase the credit amount to keep up with the cost of rental housing. Not one increase has been approved by the Legislature. That amount is just $60 per year for many renters. H. Therefore, the People hereby enact the "Homeowners and Renters Tax Credit Act of 2018" to provide an annual $500 tax credit for every homeowner and renter in California and to require that credit to increase to maintain pace with the cost of housing. Section 2. Homeowners and Renters Tax Credit Act of2018 Section 17053 of the Revenue and Taxation Code is added to read: §17053(a)(1) For a qualified homeowner and renter, there shall be allowed a credit of $500 against his or her "net tax," as defined in Section 17039. (2) Married couples residing in the same place of residence shall receive but one credit under this section, except that if each spouse files a separate return, the credit may be taken by either or equally divided between them (3) Married couples, where each maintained a separate place of residence and resided in this state during the entire taxable year, shall receive one-half the full credit allowed to married persons provided in subdivision (a). (b) For purposes of this section, a "qualified homeowner" means an individual who is eligible for the homeowner's property tax exemption pursuant to subdivision (k) of Section 3 of Article XIII of the Constitution and section 218 of this Code. (c) For purposes of this section, a "qualified renter" means an individual who, without regard to income, is eligible for the tax credit pursuant to section 17053.5. (d) An otherwise qualified homeowner or 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. (e) A person claiming the credit provided in this section shall, as part of that claim, and under penalty of perjury, furnish the necessary information as the Franchise Tax Board prescribes on a form supplied by the board. (f) 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. (g) For each taxable year after enactment of this section, the Franchise Tax Board shall adjust the tax credit set forth in subdivision (a) by an amount equal to the percentage change in the California Consumer Price Index for all items during the prior calendar year, as reported by the Department of Industrial Relations. Section 3. General Provisions (a) If any provision of this Act, or part thereof, is for any reason held to be invalid or unconstitutional, the remaining provisions shall not be affected, but shall remain in full force and effect, and to this end the provisions of this Act are severable. (b) This Act is intended to be comprehensive. It is the intent of the People that in the event this Act and measures relating to the same subject appear on the same statewide election ballot, the provisions of the other measure or measures shall be deemed to be in conflict with this Act. In the event that this Act receives a greater number of affirmative votes, the provisions of this Act shall prevail in their entirety, and all provisions of the other measure or measures shall be null and void.

Sponsors

Jon Coupal, president of the Howard Jarvis Taxpayers Association, filed the ballot initiative.

Path to the ballot

See also: California signature requirements and Laws governing the initiative process in California

In California, the number of signatures needed to qualify a measure for the ballot is based on the total number of votes cast for the office of governor. For an initiated state statute, petitioners must collect signatures equal to 5 percent of the most recent gubernatorial vote. To get a measure on the 2018 ballot, the number of signatures required was 365,880. In California, initiatives can be circulated for 180 days. Signatures needed to be certified at least 131 days before the 2018 general election, which was around June 28, 2018. As the signature verification process can take several weeks, the California secretary of state issues suggested deadlines for several months before the certification deadline.

The timeline for the initiative is as follows:

• Jon Coupal submitted a letter requesting a title and summary on September 13, 2017.
• A title and summary were issued by the California attorney general's office on November 17, 2017.
• Proponents of the initiative needed to submit 365,880 valid signatures by May 16, 2018, in order for it to make the ballot.
• On January 17, 2018, the secretary of state's office announced that the initiative's proponents withdrew the measure from consideration.

See also

• 2018 ballot measures
• California 2018 ballot propositions
• California ballot measures

External links

• Petition #17-0032