(Sacramento, CA) – Senator Jeff Stone (R-Riverside County) today introduced legislation – SB 1352 – to substantially reduce state tax rates for Californian’s working families. Also called the Saving Money And Reducing Taxes (SMART) Act, SB 1352 will make the first $100,000 of income exempt from state taxes for single filers and the first $200,000 of income exempt for married couples filing jointly.
Realizing that this move will result in a significant fiscal impact, SB 1352 will require non-resident property owners who own second homes in California, but do not pay income taxes here, to begin paying income taxes in the state based on the amount of time they spend living in the state.
“It just doesn’t seem right that hundreds of thousands of wealthy individuals spend multiple months of the year here in their million dollar mansions and use our roads, visit our hospitals and utilize our infrastructure but don’t pay any income taxes here,” said Senator Stone. “The SMART Act will give tax relief to millions of California working families and require people who own property here but say they don’t live here to start paying their fair share,” added Stone.
Senator Stone added, “California has the highest income tax in the nation, and non-resident property ownership is a sign that there is a giant loophole in our tax system that needs to be closed to give much needed relief to the middle-class families who tirelessly work in the state to be able to afford homes of their own.
Under the SMART Act, every property owner will be required to fill out a state income tax form, declaring under penalty of perjury what percentage of the year he or she spends in the State of California. These individuals will then be required to pay state income taxes at the amount of time they spend in the state. For example, if a property owner who lives here four months a year (33%) and makes $5,000,000 a year in another state based on that owner’s federal tax return, the person would be required to pay state taxes on $1,650,000 (33%) of income.
“The working families of California shouldn’t have to pay for the Hollywood elite and the Silicon Valley billionaires who use our roads, take advantage of our healthcare system and enjoy our parks and beaches without paying income taxes here even though they essentially live here,” said Senator Stone.
The SMART Act will soon be referred to the appropriate policy committee and will be debated and voted on in the coming months.
Senator Stone introduces the SMART Act (SB 1352) to reduce taxes on middle class families.