California lawmaker proposes income tax deduction for homeowners’ insurance
Billed as an effort to tackle affordability issues in the state, a new proposal pitched last week by an
Editor’s note: Sacramento Snapshot is a weekly series during the legislative session detailing what Orange County’s representatives in the Assembly and
Under the plan, homeowners would be allowed to deduct the full cost of the insurance premiums for their primary residence on their state taxes, Assemblymember
“Homeowners across
Sanchez told lawmakers last week the bill would alleviate higher insurance premium costs homeowners are experiencing, especially as insurers are moving out of state or dropping coverage. She said the bill would “help many Californians achieve and maintain the dream of home ownership.”
The bill is backed by the
“California’s housing providers and homeowners are facing rapidly escalating insurance costs, and, in many regions, declining availability of coverage due to wildfire risk and market withdrawals by insurers,” the group said in the bill analysis. “These trends place increasing financial strain on property owners and threaten housing stability across the state.”
“When property insurance becomes more expensive or difficult to obtain, it increases operating costs for housing providers and ultimately contributes to higher housing costs statewide,” it said.
Yet, the
“While we understand that the insurance market has many problems, it is a problem which will have to be resolved in the insurance market, not paid for by taxpayers,” the organization said. “In particular, with a progressive income tax, it is clear that higher-income homeowners will benefit disproportionately from this deduction.”
Sanchez, meanwhile, said in a statement on Friday, “For many seniors and families, this is the difference between staying in their home or being forced out.”
The bill was heard in the
In other news:
• Sen. Tony Strickland’s proposal to suspend the state gas tax for one year was essentially killed in committee last week.
“To say I’m disappointed is an understatement,” said Strickland, R-
Five of the seven members of the
• A bill prohibiting the sale of nitrous oxide canisters except for use in certain industries got early approval in the statehouse last week.
From Sen.
Known as whippets, these canisters have been used as a recreational drug, especially among youths. According to the
“The widespread use of nitrous oxide as a recreational drug is dangerous to individuals and to public safety,” Blakespear said. “SB 936 builds on local efforts across the state to limit its sale by creating one statewide standard to make sure nitrous oxide is only sold for its intended purposes.”
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