There’s no doubt that COVID-19 has been the worse health crisis that the country has faced in 100 years but it’s also been responsible for creating a potential wave of evictions that could hit California.
Thankfully, lawmakers are working hard to stop the evictions from happening and one of their latest bills could effectively stop them from happening.
How Will The Evictions Be Stopped?
The latest move to stop evictions from happening in California is SB-1410.
This bill would require the Franchise Tax Board to calculate the repayment installments of unpaid rent, and would authorize a tenant to apply for reduction or forgiveness of repayment installments depending on the taxpayer’s income.
The bill would require specified persons to withhold the amount of each installment from each tenant’s income during taxable years beginning on or after January 1, 2024, and before January 1, 2034, as provided. The bill would require the Franchise Tax Board to transfer these moneys to the Treasurer to be deposited in the General Fund.
This bill would specify that any deferment or repayment of rent authorized under these provisions is not included when determining the lowest gross rental rate for purposes of the Tenant Protection Act of 2019.(3) Existing law, the Personal Income Tax Law, and the Corporation Tax Law, impose taxes upon taxable income, and in conformity with federal income tax law, generally defines “gross income” for purposes of those laws as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income.
Existing law authorizes various credits against the taxes imposed by those laws.Existing law establishes the continuously appropriated Tax Relief and Refund Account in the General Fund and provides that payments required to be made to taxpayers or other persons from the Personal Income Tax Fund are to be paid from that account, including any amount allowable as an earned income tax credit in excess of any tax liabilities.
Contact RPM Central Valley
For more information about what’s happening with the rental market in California, or to speak with us about our property management services, contact us today by calling (209) 572-2222 or click here to connect with us online.