Bill Text: CA AB1690 | 2009-2010 | Regular Session | Chaptered
Bill Title: Disaster relief: County of Humboldt earthquake.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2010-09-29 - Chaptered by Secretary of State - Chapter 449, Statutes of 2010. [AB1690 Detail]
Download: California-2009-AB1690-Chaptered.html
BILL NUMBER: AB 1690 CHAPTERED
BILL TEXT
CHAPTER 449
FILED WITH SECRETARY OF STATE SEPTEMBER 29, 2010
APPROVED BY GOVERNOR SEPTEMBER 29, 2010
PASSED THE SENATE AUGUST 23, 2010
PASSED THE ASSEMBLY AUGUST 24, 2010
AMENDED IN SENATE AUGUST 19, 2010
INTRODUCED BY Assembly Member Chesbro
(Coauthor: Assembly Member Evans)
(Coauthor: Senator Wiggins)
JANUARY 27, 2010
An act to add Sections 195.164, 195.165, 195.166, 218.2, 17207.2,
and 24347.7 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 1690, Chesbro. Disaster relief: County of Humboldt earthquake.
(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 County of Humboldt, which was declared
by the Governor to be in a state of emergency due to the earthquake
that occurred on January 9, 2010.
By requiring moneys continuously appropriated from the Special
Fund for Economic Uncertainties to be allocated for the new purpose
of reimbursing the County of Humboldt for these property tax revenue
reductions, this bill would make an appropriation.
(2) 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 January 9, 2010, that was damaged or destroyed by
the earthquake in the County of Humboldt, and that has not changed
ownership since January 9, 2010, 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
the earthquake.
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.
(3) 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
County of Humboldt as a result of the earthquake that occurred 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.
(4) This bill would declare that it is to take effect immediately
as an urgency statute.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 195.164 is added to the Revenue and Taxation
Code, to read:
195.164. (a) By October 30, 2010, the auditor of the County of
Humboldt, which was the subject of the Governor's proclamation of a
state of emergency for the earthquake that occurred on January 9,
2010, 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 that disaster,
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. 2. Section 195.165 is added to the Revenue and Taxation Code,
to read:
195.165. After the county auditor of the eligible county, as
described in Section 195.164, 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. 3. Section 195.166 is added to the Revenue and Taxation Code,
to read:
195.166. (a) On or before June 30, 2011, an eligible county, as
described in Section 195.164, 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 195.165,
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 195.164 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 195.165, 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. 4. Section 218.2 is added to the Revenue and Taxation Code,
to read:
218.2. (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 January 9, 2010, that was damaged or destroyed by the
earthquake and any other related casualty that occurred as a result
of the disaster in the County of Humboldt, as declared by the
Governor in January 2010, and that has not changed ownership since
January 9, 2010, 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 earthquake.
(c) 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. 5. Section 17207.2 is added to the Revenue and Taxation Code,
to read:
17207.2. (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 sustained in the County of
Humboldt as a result of the earthquake that occurred 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. 6. Section 24347.7 is added to the Revenue and Taxation Code,
to read:
24347.7. (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 sustained in the County of
Humboldt as a result of the earthquake that occurred 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. 7. 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 4 of this act, are required
by Section 25 of Article XIII of the California Constitution.
SEC. 8. 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 earthquake that occurred within the
County of Humboldt on January 9, 2010, constitutes 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) 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. 9. 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. 10. 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
earthquake that occurred within the County of Humboldt in January
2010, that was the subject of the Governor's proclamation of a state
of emergency, it is necessary that this act take effect immediately.
