Gov. Jerry Brown on Saturday vetoed a bill to extend state tax relief on mortgage debt for another year.
Brown pointed to financial uncertainties as his reason not to support AB 99, also known as the Mortgage Debt Forgiveness Bill, and eight other proposed laws that create a new tax credit or expand an existing one.
AB 99 was introduced in January by Assemblyman Henry Perea, D-Fresno to spare California homeowners from paying taxes on their mortgage debt after a short sale or principal loan modification.
This is the second bill Perea has introduced to help struggling homeowners. Last year, Brown signed AB 1393 to extend the tax relief program through 2013.
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“It’s disappointing to hear Gov. Brown vetoed AB 99,” Perea said in a news release. “This measure would have conformed state law to federal law, saving many Californians from financial ruin.”