State's Tax Credit for Renters May Increase After More Than 40 Years
SACRAMENTO (CBS SF/BCN) – Renters in California may see the first increase to the state's rental tax credit in 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.
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