Tax Credit for Renters

Here is a suggestion about what the governor could do about that great state surplus. In the late 1970s when Proposition 13 was passed, giving a substantial tax benefit to homeowners, the state gave a small assuaging tax benefit to people who did not own a home. It was called renter’s credit and paid a small stipend of $60 a year to any person who paid $50 a month or more in rent. It was a refundable credit that could reduce the state income tax due by that amount, or if no tax was due, the individual could file for the renter’s credit only and receive a refund check.

About four or five years ago, when California was not so well off financially, the renter’s credit was discontinued. Now that we have a booming surplus, it would be more than fitting and proper for the governor to reinstate this credit along with any other tax breaks the state can afford.

Another thing the governor could do would be to put a little muscle behind the Homeowners and Renters Assistance program. This long-existing program, which very few people know about, offers a stipend annually to any citizen whose total gross income is under $13,200. The problem is so few people even know of its existence because the state does little or nothing to publicize and promote it.

Both the renter’s credit and the Homeowners and Renters Assistance programs are handled by volunteer AARP tax aides, of which I happen to be one. The service is free.

ALEXANDER R. BRADIE

Laguna Hills