California Senate proposal tackles rents, economic recovery
FILE - In this April 16, 2020, file photo, State Sen. Holly Mitchell, D-Los Angeles, chair of the Senate budget committee, discusses spending on the coronavirus at the Capitol in Sacramento, Calif. The government would cover rent payments for some low-income Californians impacted by the coronavirus under a new proposal backed by leaders in the state Senate. Mitchell said lawmakers have identified about $100 billion in savings over the next two years. (AP Photo/Rich Pedroncelli, Pool, File)
SACRAMENTO, Calif. — California would cover rent payments for some low-income residents impacted by the coronavirus under a proposal unveiled Tuesday that is backed by state Senate leaders.
The plan would give landlords tax credits that would cover the cost of their lost payments. Tenants would have 10 years to pay back the state, with some not having to pay the full amount because of a hardship exemption.
The proposal includes a $25 billion economic recovery fund to aid businesses, nonprofits and local governments.
The money would come from letting some taxpayers voluntarily prepay taxes at a discounted rate.
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