II 110th CONGRESS 1st Session S. 2362 IN THE SENATE OF THE UNITED STATES November 15, 2007 Mr. Bayh (for himself, Mr. Feingold, Ms. Stabenow, Mr. Nelson of Nebraska, and Mr. Biden) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to provide an additional standard deduction for real property taxes for nonitemizers.

1.

Short title

This Act may be cited as the Property Tax Fairness Act of 2007.

2.

Additional standard deduction for real property taxes for nonitemizers

(a)

In general

Section 63(c)(1) (defining standard deduction) is amended by striking and at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting , and, and by adding at the end the following new subparagraph: (C)in the case of any taxable year beginning in 2007 or 2008, the real property tax deduction. . (b)

Definition

Section 63(c) is amended by adding at the end the following new paragraph: (8)

Real property tax deduction

For purposes of paragraph (1), the real property tax deduction is equal to the amount of State and local real property taxes (within the meaning of section 164) paid or accrued by the taxpayer during the taxable year which do not exceed $350 ($700 in the case of a joint return). . (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2006.

3.

Broker reporting of customer's basis in securities transactions

(a)

In general

Section 6045 of the Internal Revenue Code of 1986 (relating to returns of brokers) is amended by adding at the end the following new subsection: (g)

Additional information required in the case of securities transactions

(1)

In general

If a broker is otherwise required to make a return under subsection (a) with respect to any applicable security, the broker shall include in such return the information described in paragraph (2). (2)

Additional information required

(A)

In general

The information required under paragraph (1) to be shown on a return with respect to an applicable security of a customer shall include for each reported applicable security the customer's adjusted basis in such security. (B)

Exemption from requirement

The Secretary shall issue such regulations or guidance as necessary concerning the application of the requirement under subparagraph (A) in cases in which a broker in making a return does not have sufficient information to meet such requirement with respect to the reported applicable security. Such regulations or guidance may— (i)require such other information related to such adjusted basis as the Secretary may prescribe, and (ii)exempt classes of cases in which the broker does not have sufficient information to meet either the requirement under subparagraph (A) or the requirement under clause (i). (3)

Information transfers

To the extent provided in regulations, there shall be such exchanges of information between brokers as such regulations may require for purposes of enabling such brokers to meet the requirements of this subsection. (4)

Definitions

For purposes of this subsection, the term applicable security means any— (A)security described in subparagraph (A) or (C) of section 475(c)(2), (B)interest in a regulated investment company (as defined in section 851), or (C)other financial instrument designated in regulations prescribed by the Secretary. . (b)

Effective date

The amendment made by this section shall apply to returns the due date for which (determined without regard to extensions) is after December 31, 2009, with respect to securities acquired after December 31, 2008.