SACRAMENTO – Senators Steve Glazer, D-Contra Costa, Maria Elena Durazo, D-Los Angeles and Sidney Kamlager, D-Los Angeles have been joined by a growing legislative coalition for a bill to increase and reform the California Renters Tax Credit.
The bill, SB 843, would offer support to the poorest renters and single parents at a time when California renters have been drowning in unaffordable housing costs and struggling to pay rent. SB 843 would make the tax credit fully refundable so that renters who have no tax obligation could receive the maximum refund. Approximately 2.4 million Californians would be eligible for this tax relief.
Senators Durazo and Kamlager are joint authors of SB 843, joining principal co-authors Assembly member Isaac Bryan (D-Los Angeles), Steven Choi (R-Irvine) and 41 other co-authors from both legislative chambers.
The legislation would increase the California renter’s tax credit for the first time in more than 40 years and would represent significant help to renters across California. The bill would make the renter’s tax credit more valuable to the poorest Californians by making single parents eligible for larger credits and allowing people without any tax liability to receive the full amount.
“I’m extremely proud to have Senators Durazo and Kamlager as key voices in this fight to offer support to those who need help the most,” said Senator Glazer, who introduced the measure. “They represent the highest concentration of renters among all senators — hundreds of thousands of renters who can use the relief.”
In Senator Durazo’s district, 77 percent of her constituents are renters; 66 percent of Senator Kamlager’s constituents are renters.
“Families who struggle to pay the rent have been looking for a break like this for a long time,” said Senator Durazo. “This is an issue that is near and dear to me because many of my constituents are renters who struggle to make ends meet.”
The renter’s credit has not seen an increase since 1979. The proposed increase accounts for inflation since then. SB 843 provides direct help to renters – those who typically struggle the most to find affordable housing, and who have been hit hard during COVID-19.
Senator Kamlager said, “In the spirit of economic justice, the renter’s credit should reflect today’s financial reality. I am proud to be a joint author of this bill, which will put a dent into our high cost of living and help working Californians who are hurting financially.”
Those eligible for the new renter’s credit would be single filers making $43,533 or less and joint filers making $87,066 or less. Eligible households would receive $500 for single filers and $1,000 for single parents and couples. Currently, eligible renters have their tax liabilities offset by $60 for single filers or $120 for joint filers. Nearly 2.4 million renters would be eligible for the tax credit, according to 2019 Franchise Tax Board estimates.
While California homeowners receive $5.8 billion in tax relief through mortgage deductions, renters’ relief has been barely a blip on the radar. The full cost of the new renter’s credit would be around $2.5 billion, according to 2019 Franchise Tax Board estimates.
This bill would index the credit in perpetuity to account for inflation as calculated by the Franchise Tax Board. Under the legislation, the Governor could suspend the increase during an economic emergency.
The renter’s credit was established in 1972. Since its only increase in 1979, rents in California have nearly tripled. Median state rent exceeds $1,500 a month for a two-bedroom apartment, and rentals in cities like San Francisco average more than $2,700 a month.
Joint Authors: Senators Sidney Kamlager, D-Los Angeles and Maria Elena Durazo, D-Los Angeles.
Principal coauthors: Assembly Members Isaac Bryan, D-Los Angeles, Steven Choi, R-Irvine, and Mike Gipson, D-Carson.
Coauthors:
Senators Ben Allen, D-Santa Monica; Bob Archuleta, D-Pico Rivera, Patricia Bates, R-Laguna Niguel; Josh Becker, D-San Mateo; Anna Caballero, D-Salinas; David Cortese, D-San Jose, Brian Dahle, R-Bieber; Bill Dodd, D-Napa; Lena Gonzalez, D-Long Beach; Shannon Grove, R-Bakersfield; Robert Hertzberg, D-Van Nuys; Ben Hueso, D-San Diego, Melissa Hurtado, D-Sanger, Brian Jones, R-Santee, John Laird, D-Santa Cruz, Connie Leyva, D-Chino; Monique Limón, D-Santa Barbara; Melissa Melendez, R-Lake Elsinore; David Min, D-Irvine, Josh Newman, D-Fullerton; Jim Nielsen, R-Red Bluff; Rosilicie Ochoa Bogh, R-Yucaipa; Anthony Portantino, D-La Canada Flintridge; Richard Roth, D-Riverside; Susan Rubio, D-Baldwin Park, Henry Stern, D-Malibu; Tom Umberg, D-Santa Ana; Bob Wieckowski, D-Fremont; Scott Wiener, D-San Francisco and Republican Leader Scott Wilk, R-Santa Clarita.
Assembly Members Cecilia Aguiar-Curry, D-Winters; Rebecca Bauer-Kahan, D-Orinda; Marc Berman, D-Palo Alto; Tasha Boerner Horvath, D-Encinatas; Tom Daly, D-Anaheim; Laurie Davies, R-Laguna Niguel, Tom Lackey, R-Palmdale; Alex Lee, D-San Jose; Marc Levine, D-Greenbrae; Kevin Mullin, D-San Mateo, Adrin Nazarian, D-Sherman Oaks; Janet Nguyen, R-Garden Grove, Robert Rivas, D-North Hollywood; Miguel Santiago, D-Los Angeles; Kelly Seyarto, R-Murrieta; Thurston Smith, R-Hesperia; and Carlos Villapudua, D-Stockton.
