What Is The California Relief Bill?

In our recent blog post, we covered a recent complaint filed by Ventura based lawyer, Doug Michie, that will end the State of California’s eviction ban on July 28th.

As we get closer to the end of the eviction ban, lawmakers will be working overtime to come up with proposals to keep tenants in their homes and stop a pending “eviction wave” from hitting.

One bill that’s advancing in California is SB 1410, a bill which would let tenants start paying the back rent that they owe in 2024, and they would have 10 years to pay it in full.

About 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.

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.

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