California Short Sale Tax Exemption Hearing Scheduled

California Senate Bill 30, which will reinstate the state tax exemption applicable to cancellation of qualified mortgage debt, is scheduled for a hearing before the Committee on Appropriations on April 8, 2013.

The bill was previously amended by the Committee on Government & Finance, following which it was approved by a 6-0 vote, subject to approval by the Appropriations Committee.

If the bills successfully emerges from the Appropriations Committee, it will be scheduled for a vote by the full legislature and, if passed, sent to Governor Brown for signature.

As amended, the bill will provide for reinstatement of the state tax exemption retroactive to January 1, 2013 and through December 31, 2013, mirroring the expiration of the federal 982 homeowners’ exemption.   Stay tuned….