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After more than 40 years, state's tax credit for renters may increase

California's tax credit for renters may increase to account for inflation after more than 40 years, according to state Sen. Steve Glazer's office.

Glazer, D-Contra Costa, and co-authors this week introduced Senate Bill 843, which would increase the credit from $60 for single filers to $500. For single parents and couples, the credit will be $1,000 if the bill passes.

Renters are eligible if they are single and earn $43,533 or less or if they file jointly and earn $87,066 or less. Single parents would be eligible for the same credit as couples.

"We've treated renters like the doormat outside California's economic recovery house," Glazer said in a statement. "We cannot make an economic comeback without renters having their rightful place inside. Renters have waited 42 years for a modest level of fairness in our tax code. We can't make them wait any longer."

The bill has widespread bipartisan support with 43 co-authors. The credit has not been increased since 1979.

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Almost 2.4 million renters could benefit from the credit, according to an estimate by the state's Franchise Tax Board, which collects personal and corporate income taxes.

The renter's tax credit was established in 1972 and has increased just once, in 1979. Since then, median rent in the state has more than quintupled, according to Glazer's office.

Median rent for a two-bedroom apartment in California now exceeds $1,500 and in San Francisco it averages more than $2,700.

Other Bay Area legislators who support the bill include state Sen. Dave Cortese, D-San Jose, Assemblyman Kevin Mullin, D-San Mateo, and state Sen. Josh Becker, D-Peninsula. Assemblyman Carlos Villapudua, D-Stockton, also supports the legislation.

Taxpayers will receive the full credit if it exceeds their total tax liability, according to Glazer's office.

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After more than 40 years, state's tax credit for renters may increase

by Keith Burbank / Bay City News Service

Uploaded: Thu, Jan 13, 2022, 8:03 pm

California's tax credit for renters may increase to account for inflation after more than 40 years, according to state Sen. Steve Glazer's office.

Glazer, D-Contra Costa, and co-authors this week introduced Senate Bill 843, which would increase the credit from $60 for single filers to $500. For single parents and couples, the credit will be $1,000 if the bill passes.

Renters are eligible if they are single and earn $43,533 or less or if they file jointly and earn $87,066 or less. Single parents would be eligible for the same credit as couples.

"We've treated renters like the doormat outside California's economic recovery house," Glazer said in a statement. "We cannot make an economic comeback without renters having their rightful place inside. Renters have waited 42 years for a modest level of fairness in our tax code. We can't make them wait any longer."

The bill has widespread bipartisan support with 43 co-authors. The credit has not been increased since 1979.

Almost 2.4 million renters could benefit from the credit, according to an estimate by the state's Franchise Tax Board, which collects personal and corporate income taxes.

The renter's tax credit was established in 1972 and has increased just once, in 1979. Since then, median rent in the state has more than quintupled, according to Glazer's office.

Median rent for a two-bedroom apartment in California now exceeds $1,500 and in San Francisco it averages more than $2,700.

Other Bay Area legislators who support the bill include state Sen. Dave Cortese, D-San Jose, Assemblyman Kevin Mullin, D-San Mateo, and state Sen. Josh Becker, D-Peninsula. Assemblyman Carlos Villapudua, D-Stockton, also supports the legislation.

Taxpayers will receive the full credit if it exceeds their total tax liability, according to Glazer's office.

Comments

Michael Austin
Registered user
Pleasanton Meadows
on Mar 29, 2022 at 4:39 pm
Michael Austin , Pleasanton Meadows
Registered user
on Mar 29, 2022 at 4:39 pm

Property taxpayers fund our government.
Property taxpayers should have the same retribution, why discriminate?

There is no force that causes people to come to California. People come to California on their own free will and determination. In doing so, they learn upon arrival what the going rate is for housing.

People are leaving this state because housing is too expensive. Is this tax credit retroactive for those people? Property taxpayers and all other wage earners will have to fill the void this tax credit creates.


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