Bill Text: CA AB1662 | 2009-2010 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Disaster relief.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2010-09-29 - Chaptered by Secretary of State - Chapter 447, Statutes of 2010. [AB1662 Detail]
Download: California-2009-AB1662-Amended.html
Bill Title: Disaster relief.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2010-09-29 - Chaptered by Secretary of State - Chapter 447, Statutes of 2010. [AB1662 Detail]
Download: California-2009-AB1662-Amended.html
BILL NUMBER: AB 1662 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 20, 2010
AMENDED IN SENATE AUGUST 17, 2010
AMENDED IN ASSEMBLY APRIL 7, 2010
AMENDED IN ASSEMBLY MARCH 10, 2010
INTRODUCED BY Assembly Members Portantino and Jeffries
(Coauthor: Assembly Member Adams)
JANUARY 19, 2010
An act to amend Sections 218, 17207, and 24347.5 of, and
to add Sections 170.5, add Sections 170.6,
195.158, 195.159, 195.160, 195.167, 195.168, and 195.169 to,
195.169, 218.4, 17207.6, and 24347.9 to the
Revenue and Taxation Code, relating to disaster relief, making an
appropriation therefor, and declaring the urgency thereof, to take
effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 1662, as amended, Portantino. Disaster relief.
(1) Existing law authorizes a county board of supervisors to
provide by ordinance for the reassessment of property that is damaged
or destroyed, without fault on the part of the assessee, by a major
misfortune or calamity, upon the application of the assessee or upon
the action of the county assessor with the board's approval. With
respect to certain counties that have adopted reassessment ordinances
and have been declared by the Governor to be in a state of emergency
as a result of certain events, existing law provides for state
allocations of the estimated amounts of the reductions in property
tax revenues resulting in certain fiscal years from reassessments
under those ordinances. Existing law also continuously appropriates,
without regard to fiscal years, moneys in the Special Fund for
Economic Uncertainties for purposes of funding these state
allocations.
This bill would provide for similar state allocations with respect
to property tax revenue reductions resulting from a reassessment for
damages incurred within the Counties of Los Angeles and Monterey,
which were declared by the Governor to be in a state of emergency due
to the wildfires that commenced in August 2009, and within the
counties of Calaveras, Imperial, Los Angeles, Orange, Riverside, San
Bernardino, San Francisco, and Siskiyou, which were declared by the
Governor to be in a state of emergency due to the severe winter
storms that commenced in January 2010.
By requiring moneys continuously appropriated from the Special
Fund for Economic Uncertainties to be allocated for the new purpose
of reimbursing the Counties of Calaveras, Imperial, Los Angeles,
Monterey, Orange, Riverside, San Bernardino, San Francisco, and
Siskiyou for these property tax revenue reductions, this bill would
make an appropriation.
(2) Existing law requires the auditor of a county which was the
subject of the Governor's proclamation of a state of emergency to
certify to the Director of Finance an estimate of the total reduction
in property tax revenues resulting from the reassessment by the
county assessor of those properties that are eligible as a result of
disasters, and requires the director to verify the county auditor's
estimate and certify that amount to the Controller for allocation to
the county.
This bill would prohibit, for any fire disaster occurring after
January 1, 2011, the Department of Finance to certify a county
auditor's estimate of the total reduction in property tax resulting
from the reassessment by the county assessor of eligible properties
as a result of those disasters unless the county demonstrates
compliance with specified requirements at the time the fire disaster
occurred.
(3) Existing property tax law provides, pursuant to a specified
provision of the California Constitution, for a homeowners' property
tax exemption in the amount of $7,000 of the full value of a
"dwelling," as defined.
This bill would provide that any dwelling that qualified for the
exemption prior to August 26, 2009, that was damaged or destroyed by
the wildfires in the County of Los Angeles, and prior to August 27,
2009, that was damaged or destroyed by the wildfires in the County of
Monterey, and that has not changed ownership since the commencement
dates of those disasters as listed in the proclamations, may not be
denied the exemption solely on the basis that the dwelling was
temporarily damaged or destroyed or was being reconstructed by the
owner, or was temporarily uninhabited as a result of restricted
access to the property due to wildfires.
This bill would also provide that any dwelling that qualified for
the exemption prior to the commencement dates of the severe storms
listed in the Governor's proclamations of January 2010, that was
damaged or destroyed by the severe rainstorms, heavy snows, floods,
or mudslides that occurred in the Counties of Calaveras, Imperial,
Los Angeles, Orange, Riverside, San Bernardino, San Francisco, and
Siskiyou, and that has not changed ownership since the commencement
dates of those disasters as listed in the proclamations, may not be
denied the exemption solely on the basis that the dwelling was
temporarily damaged or destroyed or was being reconstructed by the
owner, or was temporarily uninhabited as a result of restricted
access to the property due to floods, mudslides, rock slides, or
washed-out or damaged roads.
The California Constitution requires the Legislature, in each
fiscal year, to reimburse local governments for the revenue losses
incurred by those governments in that fiscal year as a result of the
homeowners' property tax exemption.
This bill would state the intent of the Legislature to make this
required reimbursement in the annual Budget Act. By requiring local
tax officials to implement new exemption criteria, this bill would
impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
(4) The Personal Income Tax Law and the Corporation Tax Law
provide for the carryover to specified taxable years of specified
losses sustained as a result of certain disasters occurring in
California in an area determined by the President of the United
States to warrant specified federal assistance, or proclaimed by the
Governor to be in a state of emergency.
This bill would extend these provisions to losses sustained in the
Counties of Los Angeles and Monterey as a result of the wildfires
that commenced in August 2009 and losses sustained in the Counties of
Calaveras, Imperial, Los Angeles, Orange, Riverside, San Bernardino,
San Francisco, and Siskiyou as a result of the severe winter storms
that commenced in January 2010. This bill would authorize a taxpayer
to make an election to claim a deduction for those losses on the tax
return for the preceding year.
(5) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 170.5 170.6 is
added to the Revenue and Taxation Code, to read:
170.5. 170.6. For any fire disaster
occurring after January 1, 2011, the Department of Finance shall not
certify a county auditor's estimate of the total amount of the
reduction in property tax revenues resulting from the reassessment by
the county assessor pursuant to paragraph (1) of subdivision (a) of
Section 170 of those properties that are eligible properties as a
result of those disasters, unless the county demonstrates compliance
with all of the following requirements at the time the fire disaster
occurred:
(a) The county had at least one of the following for each state
responsibility area within its jurisdiction:
(1) Its own structural fire protection services.
(2) A contract providing structural fire protection services by
the Department of Forestry and Fire Protection that requires all
state costs to provide structural fire protection be included in the
contract, including, but not limited to, salaries and wages,
benefits, retirement, distributed administrative costs, workers'
compensation, equipment, and costs associated with entering into the
contract.
(3) Structural fire protection services from another county, city,
special district, or political subdivision of the state, or another
entity organized solely to provide fire protection services that are
monitored and funded by a county or other public entity.
(b) The county was in compliance with Chapter 6.8 (commencing with
Section 51175) of Part 1 of Division 1 of Title 5 of the Government
Code.
(c) If a county had land designated as a very high fire hazard
severity zone of state responsibility area within its jurisdiction,
the county had a fire risk reduction public education program that
included, but was not limited to, recommendations for
ignition-resistant landscaping, creating and maintaining defensible
space around homes and other structures, and ignition-resistant
construction principles.
SEC. 2. Section 195.158 is added to the Revenue and Taxation Code,
to read:
195.158. (a) By October 30, 2010, the auditors of the Counties of
Los Angeles and Monterey, which were the subject of the Governor's
proclamation of a state of emergency for the wildfires that commenced
on August 26, 2009, and August 27, 2009, shall certify to the
Director of Finance an estimate of the total amount of the reduction
in property tax revenues on both the regular secured roll and the
supplemental roll for the 2009-10 fiscal year resulting from the
reassessment by the county assessor pursuant to paragraph (1) of
subdivision (a) of Section 170 of those properties that are eligible
properties as a result of those disasters, except that the amount
certified shall not include any estimated property tax revenue
reductions to school districts, other than basic state aid school
districts, and county offices of education.
(b) For purposes of this section, "basic state aid school district"
means any school district that does not receive a state
apportionment pursuant to subdivision (h) of Section 42238 of the
Education Code, but receives from the state only a basic
apportionment pursuant to Section 6 of Article IX of the California
Constitution.
SEC. 3. Section 195.159 is added to the Revenue and Taxation Code,
to read:
195.159. After the county auditor of the eligible county, as
described in Section 195.158, has made the applicable certification
to the Director of Finance pursuant to that section, the director
shall, within 30 days after verification of the county auditor's
estimate, certify this amount to the Controller for allocation to the
county. Upon receipt of certification from the Director of Finance,
the Controller shall make the appropriate allocation to the county
within 10 working days.
SEC. 4. Section 195.160 is added to the Revenue and Taxation Code,
to read:
195.160. (a) On or before June 30, 2011, an eligible county, as
described in Section 195.158, shall compute and remit to the
Controller for deposit in the General Fund an amount equal to the
amount allocated to it by the Controller pursuant to Section 195.159,
less the actual amount of its property tax revenue lost on the
regular secured and supplemental rolls with respect to those eligible
properties described in Section 195.158 as a result of the
reassessment of those properties pursuant to paragraph (1) of
subdivision (a) of Section 170, excluding any property tax revenue
lost by school districts, other than basic state aid school
districts, and county offices of education. If the actual amount of
property tax revenue lost by an eligible county in the immediately
preceding fiscal year, as described and limited in the preceding
sentence, exceeds the amount allocated by the Controller to that
county pursuant to Section 195.159, the Controller shall allocate the
amount of that excess to that eligible county.
(b) For purposes of this section, "basic state aid school district"
means any school district that does not receive a state
apportionment pursuant to subdivision (h) of Section 42238 of the
Education Code, but receives from the state only a basic
apportionment pursuant to Section 6 of Article IX of the California
Constitution.
SEC. 5. Section 195.167 is added to the Revenue and Taxation Code,
to read:
195.167. (a) By October 30, 2010, the auditors of the Counties of
Calaveras, Imperial, Los Angeles, Orange, Riverside, San Bernardino,
San Francisco, and Siskiyou, which were the subject of the Governor'
s proclamations of a state of emergency for the severe winter storms
that commenced in January 2010 that caused damage by the severe
rainstorms, heavy snows, floods, or mudslides, shall certify to the
Director of Finance an estimate of the total amount of the reduction
in property tax revenues on both the regular secured roll and the
supplemental roll for the 2009-10 fiscal year resulting from the
reassessment by the county assessor pursuant to paragraph (1) of
subdivision (a) of Section 170 of those properties that are eligible
properties as a result of those disasters, except that the amount
certified shall not include any estimated property tax revenue
reductions to school districts, other than basic state aid school
districts, and county offices of education.
(b) For purposes of this section, "basic state aid school district"
means any school district that does not receive a state
apportionment pursuant to subdivision (h) of Section 42238 of the
Education Code, but receives from the state only a basic
apportionment pursuant to Section 6 of Article IX of the California
Constitution.
SEC. 6. Section 195.168 is added to the Revenue and Taxation Code,
to read:
195.168. After the county auditor of the eligible county, as
described in Section 195.167, has made the applicable certification
to the Director of Finance pursuant to that section, the director
shall, within 30 days after verification of the county auditor's
estimate, certify this amount to the Controller for allocation to the
county. Upon receipt of certification from the Director of Finance,
the Controller shall make the appropriate allocation to the county
within 10 working days.
SEC. 7. Section 195.169 is added to the Revenue and Taxation Code,
to read:
195.169. (a) On or before June 30, 2011, an eligible county, as
described in Section 195.167, shall compute and remit to the
Controller for deposit in the General Fund an amount equal to the
amount allocated to it by the Controller pursuant to Section 195.168,
less the actual amount of its property tax revenue lost on the
regular secured and supplemental rolls with respect to those eligible
properties described in Section 195.167 as a result of the
reassessment of those properties pursuant to paragraph (1) of
subdivision (a) of Section 170, excluding any property tax revenue
lost by school districts, other than basic state aid school
districts, and county offices of education. If the actual amount of
property tax revenue lost by an eligible county in the immediately
preceding fiscal year, as described and limited in the preceding
sentence, exceeds the amount allocated by the Controller to that
county pursuant to Section 195.168, the Controller shall allocate the
amount of that excess to that eligible county.
(b) For purposes of this section, "basic state aid school district"
means any school district that does not receive a state
apportionment pursuant to subdivision (h) of Section 42238 of the
Education Code, but receives from the state only a basic
apportionment pursuant to Section 6 of Article IX of the California
Constitution.
SEC. 8. Section 218 of the Revenue and Taxation
Code is amended to read:
218. (a) The homeowners' property tax exemption is in the amount
of the assessed value of the dwelling specified in this section, as
authorized by subdivision (k) of Section 3 of Article XIII of the
California Constitution. That exemption shall be in the amount of
seven thousand dollars ($7,000) of the full value of the dwelling.
(b) The exemption does not extend to property that is rented,
vacant, under construction on the lien date, or that is a vacation or
secondary home of the owner or owners, nor does it apply to property
on which an owner receives the veteran's exemption.
(c) For purposes of this section, all of the following apply:
(1) "Owner" includes a person purchasing the dwelling under a
contract of sale or who holds shares or membership in a cooperative
housing corporation, which holding is a requisite to the exclusive
right of occupancy of a dwelling.
(2) (A) "Dwelling" means a building, structure, or other shelter
constituting a place of abode, whether real property or personal
property, and any land on which it may be situated. A two-dwelling
unit shall be considered as two separate single-family dwellings.
(B) "Dwelling" includes the following:
(i) A single-family dwelling occupied by an owner thereof as his
or her principal place of residence on the lien date.
(ii) A multiple-dwelling unit occupied by an owner thereof on the
lien date as his or her principal place of residence.
(iii) A condominium occupied by an owner thereof as his or her
principal place of residence on the lien date.
(iv) Premises occupied by the owner of shares or a membership
interest in a cooperative housing corporation, as defined in
subdivision (i) of Section 61, as his or her principal place of
residence on the lien date. Each exemption allowed pursuant to this
subdivision shall be deducted from the total assessed valuation of
the cooperative housing corporation. The exemption shall be taken
into account in apportioning property taxes among owners of share or
membership interests in the cooperative housing corporations so as to
benefit those owners who qualify for the exemption.
(d) Any dwelling that qualified for an exemption under this
section prior to October 20, 1991, that was damaged or destroyed by
fire in a disaster, as declared by the Governor, occurring on or
after October 20, 1991, and before November 1, 1991, and that has not
changed ownership since October 20, 1991, shall not be disqualified
as a "dwelling" or be denied an exemption under this section solely
on the basis that the dwelling was temporarily damaged or destroyed
or was being reconstructed by the owner.
(e) Any dwelling that qualified for an exemption under this
section prior to October 15, 2003, that was damaged or destroyed by
fire or earthquake in a disaster, as declared by the Governor, during
October, November, or December 2003, and that has not changed
ownership since October 15, 2003, shall not be disqualified as a
"dwelling" or be denied an exemption under this section solely on the
basis that the dwelling was temporarily damaged or destroyed or was
being reconstructed by the owner.
(f) Any dwelling that qualified for an exemption under this
section prior to June 3, 2004, that was damaged or destroyed by flood
in a disaster, as declared by the Governor, during June 2004, and
that has not changed ownership since June 3, 2004, shall not be
disqualified as a "dwelling" or be denied an exemption under this
section solely on the basis that the dwelling was temporarily damaged
or destroyed or was being reconstructed by the owner.
(g) Any dwelling that qualified for an exemption under this
section prior to August 11, 2004, that was damaged or destroyed by
the wildfires and any other related casualty that occurred in Shasta
County in a disaster, as declared by the Governor, during August
2004, and that has not changed ownership since August 11, 2004, shall
not be disqualified as a "dwelling" or be denied an exemption under
this section solely on the basis that the dwelling was temporarily
damaged or destroyed or was being reconstructed by the owner.
(h) Any dwelling that qualified for an exemption under this
section prior to December 28, 2004, that was damaged or destroyed by
severe rainstorms, floods, mudslides, or the accumulation of debris
in a disaster, as declared by the Governor, during December 2004,
January 2005, February 2005, March 2005, or June 2005, and that has
not changed ownership since December 28, 2004, shall not be
disqualified as a "dwelling" or be denied an exemption under this
section solely on the basis that the dwelling was temporarily damaged
or destroyed or was being reconstructed by the owner, or was
temporarily uninhabited as a result of restricted access to the
property due to floods, mudslides, the accumulation of debris, or
washed-out or damaged roads.
(i) Any dwelling that qualified for an exemption under this
section prior to December 19, 2005, that was damaged or destroyed by
severe rainstorms, floods, mudslides, or the accumulation of debris
in a disaster, as declared by the Governor in January 2006, April
2006, May 2006, or June 2006, and that has not changed ownership
since December 19, 2005, shall not be disqualified as a "dwelling" or
be denied an exemption under this section solely on the basis that
the dwelling was temporarily damaged or destroyed or was being
reconstructed by the owner, or was temporarily uninhabited as a
result of restricted access to the property due to floods, mudslides,
the accumulation of debris, or washed-out or damaged roads.
(j) Any dwelling that qualified for an exemption under this
section prior to July 9, 2006, that was damaged or destroyed by the
wildfires and any other related casualty that occurred in the County
of San Bernardino, as declared by the Governor in July 2006, and that
has not changed ownership since July 9, 2006, shall not be
disqualified as a "dwelling" or be denied an exemption under this
section solely on the basis that the dwelling was temporarily damaged
or destroyed or was being reconstructed by the owner, or was
temporarily uninhabited as a result of restricted access to the
property due to the wildfires.
(k) Any dwelling that qualified for an exemption under this
section prior to the commencement dates of the wildfires listed in
the Governor's proclamations of 2006 that was damaged or destroyed by
the wildfires and any other related casualty that occurred in the
Counties of Riverside and Ventura, and that has not changed ownership
since the commencement dates of these disasters as listed in the
Governor's proclamations of 2006 shall not be disqualified as a
"dwelling" or be denied an exemption under this section solely on the
basis that the dwelling was temporarily damaged or destroyed or was
being reconstructed by the owner, or was temporarily uninhabited as a
result of restricted access to the property due to the wildfires.
(l) Any dwelling that qualified for an exemption under this
section prior to January 11, 2007, that was damaged or destroyed by
severe freezing conditions, commencing January 11, 2007, and any
other related casualty that occurred in the Counties of El Dorado,
Fresno, Imperial, Kern, Kings, Madera, Merced, Monterey, Riverside,
San Bernardino, San Diego, San Luis Obispo, Santa Barbara, Santa
Clara, Stanislaus, Tulare, Ventura, and Yuba as a result of a
disaster as declared by the Governor, and that has not changed
ownership since January 11, 2007, shall not be disqualified as a
"dwelling" or be denied an exemption under this section solely on the
basis that the dwelling was temporarily damaged or destroyed or was
being reconstructed by the owner, or was temporarily uninhabited as a
result of restricted access to the property due to severe freezing
conditions.
(m) Any dwelling that qualified for an exemption under this
section prior to June 24, 2007, that was damaged or destroyed by the
wildfires and any other related casualty that occurred as a result of
this disaster in the County of El Dorado, as declared by the
Governor in June 2007, and that has not changed ownership since June
24, 2007, shall not be disqualified as a "dwelling" or be denied an
exemption under this section solely on the basis that the dwelling
was temporarily damaged or destroyed or was being reconstructed by
the owner, or was temporarily uninhabited as a result of restricted
access to the property due to the wildfires.
(n) Any dwelling that qualified for an exemption under this
section prior to July 4, 2007, that was damaged or destroyed by the
Zaca Fire and any other related casualty that occurred as a result of
this disaster in the Counties of Santa Barbara and Ventura, as
declared by the Governor in August 2007, and that has not changed
ownership since July 4, 2007, may not be denied an exemption solely
on the basis that the dwelling was temporarily damaged or destroyed
or was being reconstructed by the owner, or was temporarily
uninhabited as a result of restricted access to the property due to
the Zaca Fire.
(o) Any dwelling that qualified for an exemption under this
section prior to July 6, 2007, that was damaged or destroyed by the
wildfires and any other related casualty that occurred as a result of
this disaster in the County of Inyo, as declared by the Governor in
July 2007, and that has not changed ownership since July 6, 2007, may
not be denied an exemption solely on the basis that the dwelling was
temporarily damaged or destroyed or was being reconstructed by the
owner, or was temporarily uninhabited as a result of restricted
access to the property due to the wildfires.
(p) Any dwelling that qualified for an exemption under this
section prior to the commencement dates of the wildfires listed in
the Governor's disaster proclamations of September 15, 2007, and
October 21, 2007, that was damaged or destroyed by the wildfires and
any other related casualty that occurred in the Counties of Los
Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara,
and Ventura, and that has not changed ownership since the
commencement dates of these disasters as listed in the proclamations
shall not be disqualified as a "dwelling" or be denied an exemption
under this section solely on the basis that the dwelling was
temporarily damaged or destroyed or was being reconstructed by the
owner, or was temporarily uninhabited as a result of restricted
access to the property due to the wildfires.
(q) Any dwelling that qualified for an exemption under this
section prior to October 20, 2007, that was damaged or destroyed by
the extremely strong and damaging winds and any other related
casualty that occurred as a result of this disaster in the County of
Riverside, as declared by the Governor in November 2007, and that has
not changed ownership since October 20, 2007, shall not be
disqualified as a "dwelling" or be denied an exemption under this
section solely on the basis that the dwelling was temporarily damaged
or destroyed or was being reconstructed by the owner, or was
temporarily uninhabited as a result of restricted access to the
property due to the extremely strong and damaging winds.
(r) Any dwelling that qualified for an exemption under this
section prior to the commencement dates of the wildfires listed in
the Governor's disaster proclamations of May, June, or July 2008,
that was damaged or destroyed by the wildfires and any other related
casualty that occurred in the Counties of Butte, Kern, Mariposa,
Mendocino, Monterey, Plumas, Santa Clara, Santa Cruz, Shasta, and
Trinity and that has not changed ownership since the commencement
dates of these disasters as listed in the proclamations shall not be
disqualified as a "dwelling" or be denied an exemption under this
section solely on the basis that the dwelling was temporarily damaged
or destroyed or was being reconstructed by the owner, or was
temporarily uninhabited as a result of restricted access to the
property due to the wildfires.
(s) Any dwelling that qualified for an exemption under this
section prior to July 1, 2008, that was damaged or destroyed by the
wildfires and any other related casualty that occurred as a result of
this disaster in the County of Santa Barbara, as declared by the
Governor in July 2008, and that has not changed ownership since July
1, 2008, may not be denied an exemption solely on the basis that the
dwelling was temporarily damaged or destroyed or was being
reconstructed by the owner, or was temporarily uninhabited as a
result of restricted access to the property due to the wildfires.
(t) Any dwelling that qualified for an exemption under this
section prior to July 12, 2008, that was damaged or destroyed by
severe rainstorms, floods, landslides, or the accumulation of debris
in a disaster, as declared by the Governor, in July 2008, and that
has not changed ownership since July 12, 2008, shall not be
disqualified as a "dwelling" or be denied an exemption under this
section solely on the basis that the dwelling was temporarily damaged
or destroyed or was being reconstructed by the owner, or was
temporarily uninhabited as a result of restricted access to the
property due to floods, landslides, the accumulation of debris, or
washed-out or damaged roads.
(u) Any dwelling that qualified for an exemption under this
section prior to May 22, 2008, that was damaged or destroyed by the
wildfires and any other related casualty that occurred as a result of
this disaster in the County of Humboldt, as declared by the Governor
in August 2008, and that has not changed ownership since May 22,
2008, may not be denied an exemption solely on the basis that the
dwelling was temporarily damaged or destroyed or was being
reconstructed by the owner, or was temporarily uninhabited as a
result of restricted access to the property due to the wildfires.
(v) Any dwelling that qualified for an exemption under this
section prior to the commencement dates of the wildfires that were
the subject of the Governor's disaster proclamations of October 13,
2008, and November 15, 2008, that was damaged or destroyed by the
wildfires and any other related casualty that occurred in the
Counties of Los Angeles and Ventura and that has not changed
ownership since the commencement dates of these wildfires, shall not
be disqualified as a "dwelling" or be denied an exemption under this
section solely on the basis that the dwelling was temporarily damaged
or destroyed or was being reconstructed by the owner, or was
temporarily uninhabited as a result of restricted access to the
property due to the wildfires.
(w) Any dwelling that qualified for an exemption under this
section prior to November 13, 2008, that was damaged or destroyed by
the wildfires and any other related casualty that occurred as a
result of this disaster in the County of Santa Barbara, as declared
by the Governor in November 2008, and that has not changed ownership
since November 13, 2008, shall not be disqualified as a "dwelling" or
be denied an exemption under this section solely on the basis that
the dwelling was temporarily damaged or destroyed or was being
reconstructed by the owner, or was temporarily uninhabited as a
result of restricted access to the property due to the wildfires.
(x) Any dwelling that qualified for an exemption under this
section prior to the commencement dates of the wildfires listed in
the Governor's disaster proclamations of November 15, 2008, and
November 17, 2008, that was damaged or destroyed by the
wildfires and any other related
casualty that occurred as a result of this disaster in the Counties
of Orange, Riverside, and San Bernardino, as declared by the Governor
in November 2008, and that has not changed ownership since the
commencement dates of these disasters as listed in the proclamations,
shall not be disqualified as a "dwelling" or be denied an exemption
under this section solely on the basis that the dwelling was
temporarily damaged or destroyed or was being reconstructed by the
owner, or was temporarily uninhabited as a result of restricted
access to the property due to the wildfires.
(y) Any dwelling that qualified for an exemption under this
section prior to May 5, 2009, that was damaged or destroyed by the
wildfires and any other related casualty that occurred as a result of
this disaster in the County of Santa Barbara, as declared by the
Governor in May 2009, and that has not changed ownership since May 5,
2009, shall not be disqualified as a "dwelling" or be denied an
exemption under this section solely on the basis that the dwelling
was temporarily damaged or destroyed or was being reconstructed by
the owner, or was temporarily uninhabited as a result of restricted
access to the property due to the wildfires.
(z) Any dwelling that qualified for an exemption under this
section prior to the commencement dates of the wildfires listed in
the Governor's disaster proclamation of August 2009, that was damaged
or destroyed by the wildfires and any other related casualty that
occurred as a result of this disaster in the Counties of Los Angeles
and Monterey, as declared by the Governor in August 2009, and that
has not changed ownership since the commencement dates of these
disasters as listed in the proclamations, shall not be disqualified
as a "dwelling" or be denied an exemption under this section solely
on the basis that the dwelling was temporarily damaged or destroyed
or was being reconstructed by the owner, or was temporarily
uninhabited as a result of restricted access to the property due to
the wildfires.
(aa) Any dwelling that qualified for an exemption under this
section prior to the commencement dates of the severe winter storms
listed in the Governor's disaster proclamations of January 2010, that
was damaged or destroyed by the severe rainstorms, heavy snows,
floods, or mudslides that occurred in the Counties of Calaveras,
Imperial, Los Angeles, Orange, Riverside, San Bernardino, San
Francisco, and Siskiyou in disasters, as declared by the Governor in
January 2010, and that has not changed ownership since the
commencement dates of these disasters as listed in the proclamations,
shall not be disqualified as a "dwelling" or be denied an exemption
under this section solely on the basis that the dwelling was
temporarily damaged or destroyed or was being reconstructed by the
owner, or was temporarily uninhabited as a result of restricted
access to the property due to floods, mudslides, rockslides, or
washed-out or damaged roads.
(ab) The exemption provided for in subdivision (k) of Section 3 of
Article XIII of the California Constitution shall first be applied
to the building, structure, or other shelter and the excess, if any,
shall be applied to any land on which it may be located.
SEC. 9. Section 17207 of the Revenue and
Taxation Code is amended to read:
17207. (a) An excess disaster loss, as defined in subdivision
(c), shall be carried to other taxable years as provided in
subdivision (b), with respect to losses resulting from any of the
following disasters:
(1) Forest fire or any other related casualty occurring in 1985 in
California.
(2) Storm, flooding, or any other related casualty occurring in
1986 in California.
(3) Any loss sustained during 1987 as a result of a forest fire or
any other related casualty.
(4) Earthquake, aftershock, or any other related casualty
occurring in 1987 in California.
(5) Earthquake, aftershock, or any other related casualty
occurring in 1989 in California.
(6) Any loss sustained during 1990 as a result of fire or any
other related casualty in California.
(7) Any loss sustained as a result of the Oakland/Berkeley Fire of
1991, or any other related casualty.
(8) Any loss sustained as a result of storm, flooding, or any
other related casualty occurring in February 1992 in California.
(9) Earthquake, aftershock, or any other related casualty
occurring in April 1992 in the County of Humboldt.
(10) Riots, arson, or any other related casualty occurring in
April or May 1992 in California.
(11) Any loss sustained as a result of the earthquakes that
occurred in the County of San Bernardino in June and July of 1992, or
any other related casualty.
(12) Any loss sustained as a result of the Fountain Fire that
occurred in the County of Shasta, or as a result of either of the
fires in the Counties of Calaveras and Trinity that occurred in
August 1992, or any other related casualty.
(13) Any loss sustained as a result of storm, flooding, or any
other related casualty that occurred in the Counties of Alpine,
Contra Costa, Fresno, Humboldt, Imperial, Lassen, Los Angeles,
Madera, Mendocino, Modoc, Monterey, Napa, Orange, Plumas, Riverside,
San Bernardino, San Diego, Santa Barbara, Sierra, Siskiyou, Sonoma,
Tehama, Trinity, and Tulare, and the City of Fillmore in January
1993.
(14) Any loss sustained as a result of a fire that occurred in the
Counties of Los Angeles, Orange, Riverside, San Bernardino, San
Diego, and Ventura, during October or November of 1993, or any other
related casualty.
(15) Any loss sustained as a result of the earthquake,
aftershocks, or any other related casualty that occurred in the
Counties of Los Angeles, Orange, and Ventura on or after January 17,
1994.
(16) Any loss sustained as a result of a fire that occurred in the
County of San Luis Obispo during August of 1994, or any other
related casualty.
(17) Any loss sustained as a result of the storms or flooding
occurring in 1995, or any other related casualty, sustained in any
county of this state subject to a disaster declaration with respect
to the storms and flooding.
(18) Any loss sustained as a result of the storms or flooding
occurring in December 1996 or January 1997, or any related casualty,
sustained in any county of this state subject to a disaster
declaration with respect to the storms or flooding.
(19) Any loss sustained as a result of the storms or flooding
occurring in February 1998, or any related casualty, sustained in any
county of this state subject to a disaster declaration with respect
to the storms or flooding.
(20) Any loss sustained as a result of a freeze occurring in the
winter of 1998-99, or any related casualty, sustained in any county
of this state subject to a disaster declaration with respect to the
freeze.
(21) Any loss sustained as a result of an earthquake occurring in
September 2000, that was included in the Governor's proclamation of a
state of emergency for the County of Napa.
(22) Any loss sustained as a result of the Middle River levee
break in San Joaquin County occurring in June 2004.
(23) Any losses sustained as a result of the fires that occurred
in the Counties of Los Angeles, Riverside, San Bernardino, San Diego,
and Ventura in October and November 2003, or as a result of floods,
mudflows, and debris flows, directly related to fires.
(24) Any losses sustained in the Counties of Santa Barbara and San
Luis Obispo as a result of the San Simeon earthquake, aftershocks,
and any other related casualties.
(25) Any losses sustained as a result of the wildfires that
occurred in Shasta County, commencing August 11, 2004, and any other
related casualty.
(26) Any loss sustained in the Counties of Kern, Los Angeles,
Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and
Ventura as a result of the severe rainstorms, related flooding and
slides, and any other related casualties, that occurred in December
2004, January 2005, February 2005, March 2005, or June 2005.
(27) Any loss sustained in the Counties of Alameda, Alpine,
Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado,
Fresno, Humboldt, Kings, Lake, Lassen, Madera, Marin, Mariposa,
Mendocino, Merced, Monterey, Napa, Nevada, Placer, Plumas,
Sacramento, San Joaquin, San Luis Obispo, San Mateo, Santa Cruz,
Shasta, Sierra, Siskiyou, Solano, Sonoma, Stanislaus, Sutter,
Trinity, Tulare, Tuolumne, Yolo, and Yuba as a result of the severe
rainstorms, related flooding and slides, and any other related
casualties, that occurred in December 2005, January 2006, March 2006,
or April 2006.
(28) Any loss sustained in the County of San Bernardino as a
result of the wildfires that occurred in July 2006.
(29) Any loss sustained in the Counties of Riverside and Ventura
as a result of wildfires that occurred during the 2006 calendar year.
(30) Any loss sustained in the Counties of El Dorado, Fresno,
Imperial, Kern, Kings, Madera, Merced, Monterey, Riverside, San
Bernardino, San Diego, San Luis Obispo, Santa Barbara, Santa Clara,
Stanislaus, Tulare, Ventura, and Yuba that were the subject of the
Governor's proclamations of a state of emergency for the severe
freezing conditions that occurred in January 2007.
(31) Any loss sustained in the County of El Dorado as a result of
wildfires that occurred in June 2007.
(32) Any loss sustained in the Counties of Santa Barbara and
Ventura as a result of the Zaca Fire that occurred during the 2007
calendar year.
(33) Any loss sustained in the County of Inyo as a result of
wildfires that commenced in July 2007.
(34) Any loss sustained in the Counties of Los Angeles, Orange,
Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura as a
result of wildfires that occurred during the 2007 calendar year that
were the subject of the Governor's disaster proclamations of
September 15, 2007, and October 21, 2007.
(35) Any loss sustained in the County of Riverside as a result of
extremely strong and damaging winds that occurred in October 2007.
(36) Any loss sustained in the Counties of Butte, Kern, Mariposa,
Mendocino, Monterey, Plumas, Santa Clara, Santa Cruz, Shasta, and
Trinity as a result of wildfires that occurred in May or June 2008
that were the subject of the Governor's proclamations of a state of
emergency.
(37) Any loss sustained in the County of Santa Barbara as a result
of wildfires that occurred in July 2008.
(38) Any loss sustained in the County of Inyo as a result of the
severe rainstorms, related flooding and landslides, and any other
related casualties, that occurred in July 2008.
(39) Any loss sustained in the County of Humboldt as a result of
wildfires that commenced in May 2008.
(40) Any loss sustained in the County of Santa Barbara as a result
of wildfires that commenced in November 2008.
(41) Any loss sustained in the Counties of Los Angeles and Ventura
as a result of wildfires that commenced in October 2008 or November
2008 that were the subject of the Governor's proclamations of a state
of emergency.
(42) Any loss sustained in the Counties of Orange, Riverside, and
San Bernardino as a result of wildfires that commenced in November
2008.
(43) Any loss sustained in the County of Santa Barbara as a result
of wildfires that commenced in May 2009.
(44) Any loss sustained in the Counties of Los Angeles and
Monterey as a result of wildfires that commenced in August 2009.
(45) Any loss sustained in the Counties of Calaveras, Imperial,
Los Angeles, Orange, Riverside, San Bernardino, San Francisco, and
Siskiyou as a result of winter storms that commenced in January 2010.
(b) (1) In the case of any loss allowed under Section 165(c) of
the Internal Revenue Code, relating to limitation of losses of
individuals, any excess disaster loss shall be carried forward to
each of the five taxable years following the taxable year for which
the loss is claimed. However, if there is any excess disaster loss
remaining after the five-year period, then the applicable percentage,
as set forth in paragraph (1) of subdivision (b) of Section 17276,
of that excess disaster loss shall be carried forward to each of the
next 10 taxable years.
(2) The entire amount of any excess disaster loss as defined in
subdivision (c) shall be carried to the earliest of the taxable years
to which, by reason of subdivision (b), the loss may be carried. The
portion of the loss which shall be carried to each of the other
taxable years shall be the excess, if any, of the amount of excess
disaster loss over the sum of the adjusted taxable income for each of
the prior taxable years to which that excess disaster loss is
carried.
(c) "Excess disaster loss" means a disaster loss computed pursuant
to Section 165 of the Internal Revenue Code which exceeds the
adjusted taxable income of the year of loss or, if the election under
Section 165(i) of the Internal Revenue Code is made, the adjusted
taxable income of the year preceding the loss.
(d) The provisions of this section and Section 165(i) of the
Internal Revenue Code shall be applicable to any of the losses listed
in subdivision (a) sustained in any county or city in this state
which was proclaimed by the Governor to be in a state of disaster.
(e) Losses allowable under this section may not be taken into
account in computing a net operating loss deduction under Section 172
of the Internal Revenue Code.
(f) For purposes of this section, "adjusted taxable income" shall
be defined by Section 1212(b)(2)(B) of the Internal Revenue Code.
(g) For losses described in paragraphs (15) to (45), inclusive, of
subdivision (a), the election under Section 165(i) of the Internal
Revenue Code may be made on a return or amended return filed on or
before the due date of the return (determined with regard to
extension) for the taxable year in which the disaster occurred.
SEC. 10. Section 24347.5 of the Revenue and
Taxation Code is amended to read:
24347.5. (a) An excess disaster loss, as defined in subdivision
(c), shall be carried to other taxable years as provided in
subdivision (b), with respect to losses resulting from any of the
following disasters:
(1) Forest fire or any other related casualty occurring in 1985 in
California.
(2) Storm, flooding, or any other related casualty occurring in
1986 in California.
(3) Any loss sustained during 1987 as a result of a forest fire or
any other related casualty.
(4) Earthquake, aftershock, or any other related casualty
occurring in October 1987 in California.
(5) Earthquake, aftershock, or any other related casualty
occurring in October 1989 in California.
(6) Any loss sustained during 1990 as a result of fire or any
other related casualty in California.
(7) Any loss sustained as a result of the Oakland/Berkeley Fire of
1991, or any other related casualty.
(8) Any loss sustained as a result of storm, flooding, or any
other related casualty occurring in February 1992 in California.
(9) Earthquake, aftershock, or any other related casualty
occurring in April 1992 in the County of Humboldt.
(10) Riots, arson, or any other related casualty occurring in
April or May 1992 in California.
(11) Any loss sustained as a result of the earthquakes or any
other related casualty that occurred in the County of San Bernardino
in June and July of 1992.
(12) Any loss sustained as a result of the Fountain Fire that
occurred in the County of Shasta, or as a result of either of the
fires in the Counties of Calaveras and Trinity that occurred in
August 1992, or any other related casualty.
(13) Any loss sustained as a result of storm, flooding, or any
other related casualty that occurred in the Counties of Alpine,
Contra Costa, Fresno, Humboldt, Imperial, Lassen, Los Angeles,
Madera, Mendocino, Modoc, Monterey, Napa, Orange, Plumas, Riverside,
San Bernardino, San Diego, Santa Barbara, Sierra, Siskiyou, Sonoma,
Tehama, Trinity, and Tulare, and the City of Fillmore in January
1993.
(14) Any loss sustained as a result of a fire that occurred in the
Counties of Los Angeles, Orange, Riverside, San Bernardino, San
Diego, and Ventura, during October or November of 1993, or any other
related casualty.
(15) Any loss sustained as a result of the earthquake,
aftershocks, or any other related casualty that occurred in the
Counties of Los Angeles, Orange, and Ventura on or after January 17,
1994.
(16) Any loss sustained as a result of a fire that occurred in the
County of San Luis Obispo during August of 1994, or any other
related casualty.
(17) Any loss sustained as a result of the storms or flooding
occurring in 1995, or any other related casualty, sustained in any
county of this state subject to a disaster declaration with respect
to the storms and flooding.
(18) Any loss sustained as a result of the storms or flooding
occurring in December 1996 or January 1997, or any related casualty,
sustained in any county of this state subject to a disaster
declaration with respect to the storms or flooding.
(19) Any loss sustained as a result of the storms or flooding
occurring in February 1998, or any related casualty, sustained in any
county of this state subject to a disaster declaration with respect
to the storms or flooding.
(20) Any loss sustained as a result of a freeze occurring in the
winter of 1998-99, or any related casualty, sustained in any county
of this state subject to a disaster declaration with respect to the
freeze.
(21) Any loss sustained as a result of an earthquake occurring in
September 2000, that was included in the Governor's proclamation of a
state of emergency for the County of Napa.
(22) Any loss sustained as a result of the Middle River levee
break in San Joaquin County occurring in June 2004.
(23) Any losses sustained as a result of the fires that occurred
in the Counties of Los Angeles, Riverside, San Bernardino, San Diego,
and Ventura in October and November 2003, or as a result of floods,
mudflows, and debris flows, directly related to fires.
(24) Any losses sustained in the Counties of Santa Barbara and San
Luis Obispo as a result of the San Simeon earthquake, aftershocks,
and any other related casualties.
(25) Any losses sustained as a result of the wildfires that
occurred in Shasta County, commencing August 11, 2004, and any other
related casualty.
(26) Any loss sustained in the Counties of Kern, Los Angeles,
Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and
Ventura as a result of the severe rainstorms, related flooding and
slides, and any other related casualties, that occurred in December
2004, January 2005, February 2005, March 2005, or June 2005.
(27) Any loss sustained in the Counties of Alameda, Alpine,
Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado,
Fresno, Humboldt, Kings, Lake, Lassen, Madera, Marin, Mariposa,
Mendocino, Merced, Monterey, Napa, Nevada, Placer, Plumas,
Sacramento, San Joaquin, San Luis Obispo, San Mateo, Santa Cruz,
Shasta, Sierra, Siskiyou, Solano, Sonoma, Stanislaus, Sutter,
Trinity, Tulare, Tuolumne, Yolo, and Yuba as a result of the severe
rainstorms, related flooding and slides, and any other related
casualties, that occurred in December 2005, January 2006, March 2006,
or April 2006.
(28) Any loss sustained in the County of San Bernardino as a
result of the wildfires that occurred in July 2006.
(29) Any loss sustained in the Counties of Riverside and Ventura
as a result of wildfires that occurred during the 2006 calendar year.
(30) Any loss sustained in the Counties of El Dorado, Fresno,
Imperial, Kern, Kings, Madera, Merced, Monterey, Riverside, San
Bernardino, San Diego, San Luis Obispo, Santa Barbara, Santa Clara,
Stanislaus, Tulare, Ventura, and Yuba that were the subject of the
Governor's proclamations of a state of emergency for the severe
freezing conditions that occurred in January 2007.
(31) Any loss sustained in the County of El Dorado as a result of
wildfires that occurred in June 2007.
(32) Any loss sustained in the Counties of Santa Barbara and
Ventura as a result of the Zaca Fire that occurred during the 2007
calendar year.
(33) Any loss sustained in the County of Inyo as a result of
wildfires that commenced in July 2007.
(34) Any loss sustained in the Counties of Los Angeles, Orange,
Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura as a
result of wildfires that occurred during the 2007 calendar year that
were the subject of the Governor's disaster proclamations of
September 15, 2007, and October 21, 2007.
(35) Any loss sustained in the County of Riverside as a result of
extremely strong and damaging winds that occurred in October 2007.
(36) Any loss sustained in the Counties of Butte, Kern, Mariposa,
Mendocino, Monterey, Plumas, Santa Clara, Santa Cruz, Shasta, and
Trinity as a result of wildfires that occurred in May or June 2008
that were the subject of the Governor's proclamations of a state of
emergency.
(37) Any loss sustained in the County of Santa Barbara as a result
of wildfires that occurred in July 2008.
(38) Any loss sustained in the County of Inyo as a result of the
severe rainstorms, related flooding and landslides, and any other
related casualties, that occurred in July 2008.
(39) Any loss sustained in the County of Humboldt as a result of
wildfires that commenced in May 2008.
(40) Any loss sustained in the County of Santa Barbara as a result
of wildfires that commenced in November 2008.
(41) Any loss sustained in the Counties of Los Angeles and Ventura
as a result of wildfires that commenced in October 2008 or November
2008 that were the subject of the Governor's proclamations of a state
of emergency.
(42) Any loss sustained in the Counties of Orange, Riverside, and
San Bernardino as a result of wildfires that commenced in November
2008.
(43) Any loss sustained in the County of Santa Barbara as a result
of wildfires that commenced in May 2009.
(44) Any loss sustained in the Counties of Los Angeles and
Monterey as a result of wildfires that commenced in August 2009.
(45) Any loss sustained in the Counties of Calaveras, Imperial,
Los Angeles, Orange, Riverside, San Bernardino, San Francisco, and
Siskiyou as a result of winter storms that commenced in January 2010.
(b) (1) In the case of any loss allowed under Section 165 of the
Internal Revenue Code, relating to losses, any excess disaster loss
shall be carried forward to each of the five taxable years following
the taxable year for which the loss is claimed. However, if there is
any excess disaster loss remaining after the five-year period, then
the applicable percentage, as set forth in paragraph (1) of
subdivision (b) of Section 24416, of that excess disaster loss shall
be carried forward to each of the next 10 taxable years.
(2) The entire amount of any excess disaster loss as defined in
subdivision (c) shall be carried to the earliest of the taxable years
to which, by reason of
subdivision (b), the loss may be carried. The portion of the loss
which shall be carried to each of the other taxable years shall be
the excess, if any, of the amount of excess disaster loss over the
sum of the net income for each of the prior taxable years to which
that excess disaster loss is carried.
(c) "Excess disaster loss" means a disaster loss computed pursuant
to Section 165 of the Internal Revenue Code, which exceeds the net
income of the year of loss or, if the election under Section 165(i)
of the Internal Revenue Code is made, the net income of the year
preceding the loss.
(d) The provisions of this section and Section 165(i) of the
Internal Revenue Code shall be applicable to any of the losses listed
in subdivision (a) sustained in any county or city in this state
which was proclaimed by the Governor to be in a state of disaster.
(e) Any corporation subject to the provisions of Section 25101 or
25101.15 that has disaster losses pursuant to this section, shall
determine the excess disaster loss to be carried to other taxable
years under the principles specified in Section 25108 relating to net
operating losses.
(f) Losses allowable under this section may not be taken into
account in computing a net operating loss deduction under Section 172
of the Internal Revenue Code.
(g) For losses described in paragraphs (15) to (45), inclusive, of
subdivision (a), the election under Section 165(i) of the Internal
Revenue Code may be made on a return or amended return filed on or
before the due date of the return (determined with regard to
extension) for the taxable year in which the disaster occurred.
SEC. 8. Section 218.4 is added to the
Revenue and Taxation Code , to read:
218.4. (a) For purposes of this section, all of the following
apply:
(1) "Owner" includes a person purchasing the dwelling under a
contract of sale or who holds shares or membership in a cooperative
housing corporation, which holding is a requisite to the exclusive
right of occupancy of a dwelling.
(2) (A) "Dwelling" means a building, structure, or other shelter
constituting a place of abode, whether real property or personal
property, and any land on which it may be situated. A two-dwelling
unit shall be considered as two separate single-family dwellings.
(B) "Dwelling" includes the following:
(i) A single-family dwelling occupied by an owner thereof as his
or her principal place of residence on the lien date.
(ii) A multiple-dwelling unit occupied by an owner thereof on the
lien date as his or her principal place of residence.
(iii) A condominium occupied by an owner thereof as his or her
principal place of residence on the lien date.
(iv) Premises occupied by the owner of shares or a membership
interest in a cooperative housing corporation, as defined in
subdivision (i) of Section 61, as his or her principal place of
residence on the lien date. Each exemption allowed pursuant to this
subdivision shall be deducted from the total assessed valuation of
the cooperative housing corporation. The exemption shall be taken
into account in apportioning property taxes among owners of share or
membership interests in the cooperative housing corporations so as to
benefit those owners who qualify for the exemption.
(b) Any dwelling that qualified for an exemption under Section 218
prior to the commencement dates of the wildfires listed in the
Governor's disaster proclamation of August 2009, that was damaged or
destroyed by the wildfires and any other related casualty that
occurred as a result of this disaster in the Counties of Los Angeles
and Monterey, as declared by the Governor in August 2009, and that
has not changed ownership since the commencement dates of these
disasters as listed in the proclamations, shall not be disqualified
as a "dwelling" or be denied an exemption under Section 218 solely on
the basis that the dwelling was temporarily damaged or destroyed or
was being reconstructed by the owner, or was temporarily uninhabited
as a result of restricted access to the property due to the
wildfires.
(c) Any dwelling that qualified for an exemption under Section 218
prior to the commencement dates of the severe winter storms listed
in the Governor's disaster proclamations of January 2010, that was
damaged or destroyed by the severe rainstorms, heavy snows, floods,
or mudslides that occurred as a result of these disasters in the
Counties of Calaveras, Imperial, Los Angeles, Orange, Riverside, San
Bernardino, San Francisco, and Siskiyou, as declared by the Governor
in January 2010, and that has not changed ownership since the
commencement dates of these disasters as listed in the proclamations,
shall not be disqualified as a "dwelling" or be denied an exemption
under Section 218 solely on the basis that the dwelling was
temporarily damaged or destroyed or was being reconstructed by the
owner, or was temporarily uninhabited as a result of restricted
access to the property due to floods, mudslides, rockslides, or
washed-out or damaged roads.
(d) The exemption provided for in subdivision (k) of Section 3 of
Article XIII of the California Constitution shall first be applied to
the building, structure, or other shelter and the excess, if any,
shall be applied to any land on which it may be located.
SEC. 9. Section 17207.6 is added to the
Revenue and Taxation Code , to read:
17207.6. (a) An excess disaster loss, as defined in subdivision
(c), shall be carried to other taxable years as provided in
subdivision (b), with respect to losses resulting from any of the
following disasters:
(1) Any loss sustained in the Counties of Los Angeles and Monterey
as a result of wildfires that commenced in August 2009.
(2) Any loss sustained in the Counties of Calaveras, Imperial, Los
Angeles, Orange, Riverside, San Bernardino, San Francisco, and
Siskiyou as a result of winter storms that commenced in January 2010.
(b) (1) In the case of any loss allowed under Section 165(c) of
the Internal Revenue Code, relating to limitation of losses of
individuals, any excess disaster loss shall be carried forward to
each of the five taxable years following the taxable year for which
the loss is claimed. However, if there is any excess disaster loss
remaining after the five-year period, then the applicable percentage,
as set forth in paragraph (1) of subdivision (b) of Section 17276,
of that excess disaster loss shall be carried forward to each of the
next 10 taxable years.
(2) The entire amount of any excess disaster loss as defined in
subdivision (c) shall be carried to the earliest of the taxable years
to which, by reason of subdivision (b), the loss may be carried. The
portion of the loss which shall be carried to each of the other
taxable years shall be the excess, if any, of the amount of excess
disaster loss over the sum of the adjusted taxable income for each of
the prior taxable years to which that excess disaster loss is
carried.
(c) "Excess disaster loss" means a disaster loss computed pursuant
to Section 165 of the Internal Revenue Code which exceeds the
adjusted taxable income of the year of loss or, if the election under
Section 165(i) of the Internal Revenue Code is made, the adjusted
taxable income of the year preceding the loss.
(d) The provisions of this section and Section 165(i) of the
Internal Revenue Code shall be applicable to any of the losses listed
in subdivision (a) sustained in any county or city in this state
which was proclaimed by the Governor to be in a state of disaster.
(e) Losses allowable under this section may not be taken into
account in computing a net operating loss deduction under Section 172
of the Internal Revenue Code.
(f) For purposes of this section, "adjusted taxable income" shall
be defined by Section 1212(b)(2)(B) of the Internal Revenue Code.
(g) For losses described in subdivision (a), the election under
Section 165(i) of the Internal Revenue Code may be made on a return
or amended return filed on or before the due date of the return
(determined with regard to extension) for the taxable year in which
the disaster occurred.
SEC. 10. Section 24347.9 is added to the
Revenue and Taxation Code , to read:
24347.9. (a) An excess disaster loss, as defined in subdivision
(c), shall be carried to other taxable years as provided in
subdivision (b), with respect to losses resulting from any of the
following disasters:
(1) Any loss sustained in the Counties of Los Angeles and Monterey
as a result of wildfires that commenced in August 2009.
(2) Any loss sustained in the Counties of Calaveras, Imperial, Los
Angeles, Orange, Riverside, San Bernardino, San Francisco, and
Siskiyou as a result of winter storms that commenced in January 2010.
(b) (1) In the case of any loss allowed under Section 165 of the
Internal Revenue Code, relating to losses, any excess disaster loss
shall be carried forward to each of the five taxable years following
the taxable year for which the loss is claimed. However, if there is
any excess disaster loss remaining after the five-year period, then
the applicable percentage, as set forth in paragraph (1) of
subdivision (b) of Section 24416, of that excess disaster loss shall
be carried forward to each of the next 10 taxable years.
(2) The entire amount of any excess disaster loss as defined in
subdivision (c) shall be carried to the earliest of the taxable years
to which, by reason of subdivision (b), the loss may be carried. The
portion of the loss which shall be carried to each of the other
taxable years shall be the excess, if any, of the amount of excess
disaster loss over the sum of the net income for each of the prior
taxable years to which that excess disaster loss is carried.
(c) "Excess disaster loss" means a disaster loss computed pursuant
to Section 165 of the Internal Revenue Code, which exceeds the net
income of the year of loss or, if the election under Section 165(i)
of the Internal Revenue Code is made, the net income of the year
preceding the loss.
(d) The provisions of this section and Section 165(i) of the
Internal Revenue Code shall be applicable to any of the losses listed
in subdivision (a) sustained in any county or city in this state
which was proclaimed by the Governor to be in a state of disaster.
(e) Any corporation subject to the provisions of Section 25101 or
25101.15 that has disaster losses pursuant to this section, shall
determine the excess disaster loss to be carried to other taxable
years under the principles specified in Section 25108 relating to net
operating losses.
(f) Losses allowable under this section may not be taken into
account in computing a net operating loss deduction under Section 172
of the Internal Revenue Code.
(g) For losses described in subdivision (a), the election under
Section 165(i) of the Internal Revenue Code may be made on a return
or amended return filed on or before the due date of the return
(determined with regard to extension) for the taxable year in which
the disaster occurred.
SEC. 11. It is the intent of the Legislature to provide in the
annual Budget Act those additional reimbursements to local
governments that, as a result of Section 8 of this act, are required
by Section 25 of Article XIII of the California Constitution.
SEC. 12. The Legislature finds and declares that this act fulfills
a statewide public purpose because of all of the following:
(a) The Governor of California has officially proclaimed a state
of emergency declaring that the wildfires that occurred within the
Counties of Los Angeles and Monterey, commencing in August 2009,
constitute conditions of extreme peril to public health and safety to
persons and property within that county, thus qualifying affected
persons for various forms of governmental assistance and relief.
(b) The Governor of California has officially proclaimed a state
of emergency declaring that the winter storms that occurred within
the Counties of Calaveras, Imperial, Los Angeles, Orange, Riverside,
San Bernardino, San Francisco, and Siskiyou, commencing in January
2010, constitute conditions of extreme peril to public health and
safety to persons and property within that county, thus qualifying
affected persons for various forms of governmental assistance and
relief.
(c) This act is consistent with, and supplements, the proclaimed
disaster assistance and relief by providing necessary fiscal
assistance and tax relief to affected jurisdictions and persons to
allow them to maintain essential basic services and repair damage to,
and restore, their homes and businesses.
SEC. 13. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.
SEC. 14. This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
In order to timely provide essential relief to those persons and
jurisdictions that have suffered damage or loss as a result of the
wildfires that occurred within the Counties of Los Angeles and
Monterey, commencing in August 2009, or as a result of the severe
winter storms that occurred in the Counties of Calaveras, Imperial,
Los Angeles, Orange, Riverside, San Bernardino, San Francisco, and
Siskiyou, commencing in January 2010, that were the subject of the
Governor's proclamations of a state of emergency, it is necessary
that this act take effect immediately.
