[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5290 Introduced in House (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.
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