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Bill Would End Tax Breaks for Second Homes in California
"In their quest for more money for low-income housing construction, state lawmakers are now turning to Californians who own more than one home," reports Liam Dillon.
"Assemblyman David Chiu (D-San Francisco) introduced a bill Friday to end a tax break that allows homeowners to deduct the interest from the mortgage on their second home from their state taxes," adds Dillon. The tax break amounted to $300 million in lost revenue for the state, with 31,000 residents benefitting from the break. "The bill, AB 71, would direct those funds to an existing program that finances low-income housing construction through tax credits."
The article includes statements from Assemblymember Chiu, who argues for the benefits of AB 71 to the larger portion of the population in need of housing. Dillon also details the other bills already moving through the legislature that have similar goals for easing the state's housing crunch. AB 71 is unique among the many housing bills, writes Dillon, because it strips away an existing benefit from homeowners.