The mayors of California’s largest cities want more money to fight homelessness and some are endorsing a controversial new tax on vacation homes.
Those mayors believe it is possible to raise up to a half-billion dollars annually by eliminating the mortgage interest deduction or MID, for people who own vacation or second homes in California.
Assembly Bill 1905 would eliminate the option to claim the MID on second homes. It would also impact primary home loans acquired in 2018 or later by lowering the amount of interest a filer could claim on their state income tax $750,000 under the proposal. The current limit is $1,000,000.
California has an estimated 150,000 homeless people — or roughly one-fourth of the nation’s total,
The bill is expected to be heard in an Assembly policy committee in the spring.
