CAA-sponsored renters-rebate bill advances
A bill that would likely offer a tax rebate to hundreds of thousands of low-income Californians renters survived its first committee hearing this week.
“It’s essential for people who are low-income and disabled to take care of a lot of their basic needs at a time when costs are raising and rents are raising,” said Mira Ingram. The San Francisco resident, who uses a wheelchair and is on a fixed income, is quoted in this KCBS story about the bill.
Photo by Mike Nemeth
Mira Ingram traveled from San Francisco to the Capitol this week to support AB 2175.
AB 2175, or the Renter’s Tax Assistance Act, would provide tax refunds to financially struggling renters.
“Homeowners get state tax breaks, but the same can’t be said for renters,” said Debra Carlton, senior vice president of public affairs for the California Apartment Association. “This bill will correct that imbalance. With the cost of living climbing rapidly, low-income renters need a break more than ever. They need the Renter’s Tax Assistance Act.”
The bill, sponsored by the California Apartment Association and co-authored by Assemblymen Tom Daly and Phil Ting, passed the Assembly Committee on Revenue and Taxation on a 6 to 3 vote. It now heads to the Appropriations Committee.
The amounts of assistance under AB 2175 would vary based on household income, beginning with $250 per year and capping at $348 per year.
“The modest refunds established by this new program will offer thousands of families with a small measure of security,” Daly said. “In addition, these refunds will also have a positive cumulative effect on the economy. The families and individuals receiving the assistance will spend that money at local businesses.”
For many low-income tenant households, these sums would equate to one or two weeks’ worth of wages.
California funded a renters’ assistance program prior to 2008, when Gov. Arnold Schwarzenegger used a line-item veto to eliminate it from the state budget.
“Compared to homeowners, renters really shouldered the burden of cuts to help California cope with its budget crisis,” Ting said. “As state finances improve, our tax policy cannot continue treating renters as second-class citizens.”
Ingram, who traveled to Sacramento this week to support AB 2175, used the previous rebate to pay for wheelchair maintenance. She added, “For many people like me, the renters’ rebate helps cover our basic needs.”
