PolicyEngine / PolicyEngine/policyengine-us
Uprate California tax parameters
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- 3d 3h
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Description
The California renter's credit income thresholds rise by the June-June change to California CPI: https://casetext.com/statute/california-codes/california-revenue-and-taxation-code/division-2-other-taxes/part-10-personal-income-tax/chapter-2-imposition-of-tax/section-170535-credit-for-qualified-renter
>(j) For each taxable year beginning on or after January 1, 1999, the Franchise Tax Board shall recompute the adjusted gross income amounts set forth in subdivision (a). The computation shall be made as follows:
(1) The Department of Industrial Relations shall transmit annually to the Franchise Tax Board the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current year, no later than August 1 of the current calendar year.
(2) The Franchise Tax Board shall compute an inflation adjustment factor by adding 100 percent to the portion of the percentage change figure which is furnished pursuant to paragraph (1) and dividing the result by 100.
(3) The Franchise Tax Board shall multiply the amount in subparagraph (B) of paragraph (1) of subdivision (a) for the preceding taxable year by the inflation adjustment factor determined in paragraph (2), and round off the resulting products to the nearest one dollar ($1).
I haven't checked others. This differs from the federal tax inflation adjustments in three ways:
1. Not chained CPI
2. California-specific
3. One year delayed, requiring us to use a CPI forecast for June of the current year (tax parameters are not known until tax forms come out)
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