H.R. 5290 (107th): Family Property Tax Relief Act of 2002

107th Congress, 2001–2002. Text as of Jul 26, 2002 (Introduced).

Status & Summary | PDF | Source: GPO

HR 5290 IH

107th CONGRESS

2d Session

H. R. 5290

To amend the Internal Revenue Code of 1986 to provide a refundable credit for State and local real and personal property taxes paid by individuals.

IN THE HOUSE OF REPRESENTATIVES

JULY 26, 2002

Mr. MALONEY of Connecticut introduced the following bill; which was referred to the Committee on Ways and Means


A BILL

To amend the Internal Revenue Code of 1986 to provide a refundable credit for State and local real and personal property taxes paid by individuals.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ‘Family Property Tax Relief Act of 2002’.

SEC. 2. REFUNDABLE CREDIT FOR STATE AND LOCAL REAL AND PERSONAL PROPERTY TAXES.

    (a) GENERAL RULE- Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by redesignating section 35 as section 36 and by inserting after section 34 the following new section:

‘SEC. 35. CREDIT FOR STATE AND LOCAL REAL AND PERSONAL PROPERTY TAXES.

    ‘(a) ALLOWANCE OF CREDIT- In the case of an individual, at the election of the taxpayer there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to 50 percent of the qualified property taxes paid by the taxpayer for such year.

    ‘(b) LIMITATIONS-

      ‘(1) DOLLAR AMOUNT OF CREDIT- The amount allowed as a credit under subsection (a) for a taxable year shall not exceed the lesser of--

        ‘(A) $5,000, or

        ‘(B) the sum of--

      ‘(i) the taxpayer’s regular tax liability (as defined by section 26(b)) for the taxable year, and

      ‘(ii) the social security taxes (as defined in section 24(d)(2)) with respect to the taxpayer for the taxable year.

      ‘(2) CREDIT AMOUNT- The amount allowed as a credit under subsection (a) shall not exceed the percentage of the amount determined under subsection (a) specified in the following table (determined after the application of paragraph (1) but without regard to this paragraph):

‘Taxable years beginning

--

in calendar year:

--The percentage is:

2002 and 2003

--20

2004 and 2005

--40

2006 and 2007

--60

2008 and 2009

--80

2009 and thereafter

--100.

    ‘(c) QUALIFIED PROPERTY TAXES-

      ‘(1) IN GENERAL- For purposes of this section, the term ‘qualified property taxes’ means--

        ‘(A) State and local real property taxes attributable to the principal residence (within the meaning of section 121) of the taxpayer, and

        ‘(B) State and local personal property taxes attributable to not more than 2 qualified vehicles of the taxpayer.

      ‘(2) QUALIFIED VEHICLE- For purposes of paragraph (1), the term ‘qualified vehicle’ means a vehicle which is not used in a trade or business and which is a passenger automobile (as defined in section 280F(d)(5)) or a light general purpose truck.

    ‘(d) SPECIAL RULES-

      ‘(1) NO DEDUCTION FOR MARRIED INDIVIDUALS FILING SEPARATE RETURNS- If the taxpayer is a married individual (within the meaning of section 7703), this section shall apply only if the taxpayer and the taxpayer’s spouse file a joint return for the taxable year.

      ‘(2) DENIAL OF CREDIT TO DEPENDENTS- No credit shall be allowed under this section to any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which such individual’s taxable year begins.

      ‘(3) DENIAL OF DOUBLE BENEFIT- Any amount taken into account in determining the credit allowed under this section may not be taken into account in determining any credit or deduction under any other provision of this chapter.’.

    (b) TECHNICAL AMENDMENTS-

      (1) Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting ‘or from section 35 of such Code’ before the period at the end.

      (2) The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by striking the item relating to section 35 and inserting the following:

‘Sec. 35. Credit for state and local real and personal property taxes.

‘Sec. 36. Overpayments of tax.’.

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2001.