I
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 Representa-
tives 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 sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to refundable credits) is amended by redes-
ignating section 35 as section 36 and by inserting after
section 34 the following new section:
‘‘SEC. 35. CREDIT FOR STATE AND LOCAL REAL AND PER-
SONAL PROPERTY TAXES.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, at the election of the taxpayer there shall be al-
lowed 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 de-
fined by section 26(b)) for the taxable year, and
‘‘(ii) the social security taxes (as defined in sec-
tion 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 sub-
section (a) specified in the following table (deter-
mined after the application of paragraph (1) but
without regard to this paragraph):
‘‘Taxable years beginning
in calendar year:
The percentage is:
2002 and 2003 ...........................................................................
2004 and 2005 ...........................................................................
2006 and 2007 ...........................................................................
2008 and 2009 ...........................................................................
2009 and thereafter ...................................................................
100.
‘‘(c) QUALIFIED PROPERTY TAXES.—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified property taxes’ means—
‘‘(A) State and local real property taxes at-
tributable 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 sec-
tion 280F(d)(5)) or a light general purpose truck.
‘‘(d) SPECIAL RULES.—
‘‘(1) NO
DEDUCTION
FOR
MARRIED
INDIVID-
UALS FILING SEPARATE RETURNS.—If the taxpayer
is a married individual (within the meaning of sec-
tion 7703), this section shall apply only if the tax-
payer 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 indi-
vidual with respect to whom a deduction under sec-
tion 151 is allowable to another taxpayer for a tax-
able 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 ac-
count 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 Rev-
enue 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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