State Sen. Anthony Cannella, R-Ceres, announced Tuesday he has introduced a bill in the California State Senate to help homeowners in San Benito County receive tax relief on forgiven mortgage debt.
“Our region was at the epicenter of California’s housing market collapse and is still rebounding from the effects,” he said in a statement. “SB 339 will ensure that state law conforms to federal law, and families who have had their mortgage restructured will not be penalized.”
The bill, SB 339, would reintroduce a version of the federal Mortgage Debt Relief Act of 2007, which was adopted by California legislators at the state level the same year but expired in 2013. Cannella’s legislation would restore tax relief for homeowners who would otherwise owe state income tax on the amount of forgiven debt.
The legislation would affect 3,500 mortgages in Cannella’s district, including 227 in San Benito County and a total of nearly $34 million in principal deductions for the county.
