Homeowner and Renter Assistance (HRA) (Circuit Breaker)

State

California

Year

2018

Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Type

Circuit Breaker

Benefit

The program is currently not funded. The program has not been funded since FY2008-09. Because of the long period of not funding the program, it is assumed that it is no longer an active program. For homeowners, the benefit is a payment of a percentage of tax on the first $34,000 of full value. For renters, it is a percentage of the property tax equivalent ($250) defined by statute. The percentage is determined by one of 37 income brackets adjusted annually by the following formula: the percentage change in CPI plus 100 percent, divided by 100 [(percentage change of CPI+100%)/100] times the income figure from the previous year.

How is Benefit Disbursed

Direct payment to taxpayer

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property is eligible for this program.

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Renter

Description of Eligibility Criteria

Applicants must be at least 62 years of age, blind or, disabled. In addition, the applicant must have a gross household income not exceeding the highest income bracket. If the applicant rented, then the rent must be $50 or more per month.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

The state disburses benefits directly to eligible applicants.

Record ID

CA101_RR18

Footnotes

Gross household income is total household income plus all non-cash business expenses such as depreciation, amortization, depletion, and net operating losses. Total household income includes social security; interest/dividends; pensions/annuities; Supplemental Security Income (SSI); State Supplemental Program (SSP); Aid to the Totally Disabled (ATD); rental income/loss; gain/loss from sale of assets; wages, alimony, life insurance, unemployment insurance, worker's compensation for temporary disability, and public assistance and relief. In addition, participants may deduct the following amounts from their total household income: IRA contributions deduction, student loan interest deduction, medical Savings Account (MSA) deduction, moving expenses, and alimony paid from the total household income.

Sources

Cal. Revenue and Taxation Code § 20505 ~ § 20564 (in effect for 2017)
Homeowner and Renter Assistance, California Franchise Tax Board (no date) [http://www.ftb.ca.gov/individuals/hra/index.shtml Accessed on 04/17/2017] View Archived Source

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