Taxation: Personal Income Tax Law: cost-of-living refundable tax credit.

This bill would allow, for each taxable year beginning on or after January 1, 2027, and before January 1, 2032, a cost-of-living credit against those taxes to a qualified taxpayer, as defined, in a qualified amount, calculated as provided based on the taxpayer's filing and residence status. The bill would require the amount of the credit exceeding the taxpayer's liability to be credited against other amounts due, if any, and would require the balance to be paid from the Tax Relief and Refund Account and refunded to the taxpayer. By increasing the payments from the Tax Relief and Refund Account, a continuously appropriated fund, the bill would make an appropriation.

The Personal Income Tax Law generally defines "gross income" as income from whatever source derived and provides various exclusions from gross income.

This bill would, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, provide an exclusion from gross income those amounts received as a refund under the above-described cost-of-living tax credit.

This bill would make legislative findings and declarations related to a gift of public funds and other related findings and declarations.