Bill Text: CA SB35 | 2015-2016 | Regular Session | Chaptered
Bill Title: Income and corporation taxes: deductions: disaster relief.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2015-09-01 - Chaptered by Secretary of State. Chapter 230, Statutes of 2015. [SB35 Detail]
Download: California-2015-SB35-Chaptered.html
BILL NUMBER: SB 35 CHAPTERED
BILL TEXT
CHAPTER 230
FILED WITH SECRETARY OF STATE SEPTEMBER 1, 2015
APPROVED BY GOVERNOR SEPTEMBER 1, 2015
PASSED THE SENATE AUGUST 17, 2015
PASSED THE ASSEMBLY JULY 16, 2015
AMENDED IN ASSEMBLY JUNE 16, 2015
AMENDED IN SENATE MARCH 4, 2015
INTRODUCED BY Senator Wolk
(Principal coauthor: Assembly Member Dodd)
DECEMBER 1, 2014
An act to add and repeal Sections 17207.14 and 24347.14 of the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 35, Wolk. Income and corporation taxes: deductions: disaster
relief.
The Personal Income Tax Law and the Corporation Tax Law provide
for a deduction of specified losses sustained as a result of
disasters occurring in California in an area determined by the
President of the United States to warrant specified federal
assistance or, for other disasters for which a specific law has been
enacted, proclaimed by the Governor to be in a state of emergency.
Those laws allow a taxpayer to elect to deduct those disaster losses
on the return for the taxable year preceding the taxable year in
which the disaster occurred, filed by a specified date. Existing law
also allows individual and corporate taxpayers to utilize net
operating losses and carryovers and carrybacks of those losses for
purposes of offsetting their individual and corporate tax
liabilities. Existing law, for net operating losses incurred in
taxable years beginning on or after January 1, 2013, allows net
operating losses to be carrybacks to each of the preceding 2 taxable
years, as provided, but varies the amount of carryback allowed for
net operating losses attributed to specified taxable years.
This bill would, for taxable years beginning on or after January
1, 2014, and before January 1, 2024, extend the provisions relating
to disaster losses to losses in any city, county, or city and county
that is proclaimed by the Governor to be in a state of emergency and
would extend the time during which a taxpayer may claim the
deduction. This bill would additionally provide that any law that
suspends, defers, reduces, or otherwise diminishes the deduction of a
net operating loss, other than those variations already imposed in
existing law, shall not apply to a net operating loss attributable to
these specified disaster losses.
This bill would make a legislative finding and declaration
relating to the statewide public purpose served by the bill.
This bill would take effect immediately as a tax levy.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares:
(a) On August 24, 2014, the Governor of California proclaimed a
state of emergency due to the South Napa Earthquake that occurred in
August 2014, within the Counties of Napa, Solano, and Sonoma, thus
qualifying affected persons for various forms of governmental
assistance and relief.
(b) On September 11, 2014, the President of the United States made
a Major Disaster Declaration for the Counties of Napa and Solano due
to the South Napa Earthquake, thus qualifying affected persons to
file an amended return to deduct a disaster loss in the taxable year
prior to the loss year.
(c) This act is consistent with, and supplements, the proclaimed
disaster assistance and relief by providing necessary tax relief to
persons in the affected jurisdictions by allowing them to maintain
essential basic services and repair damage to, and restore, their
homes and businesses.
(d) The Legislature has enacted identical treatment for almost
every significant disaster that has occurred in California for the
last 25 years.
SEC. 2. Section 17207.14 is added to the Revenue and Taxation
Code, to read:
17207.14. (a) For taxable years beginning on or after January 1,
2014, and before January 1, 2024, Section 165(i) of the Internal
Revenue Code, relating to disaster losses, shall be applicable to any
loss sustained as a result of any disaster occurring in any city,
county, or city and county in this state that is proclaimed by the
Governor to be in a state of emergency.
(b) (1) For losses described in subdivision (a), the election
under Section 165(i) of the Internal Revenue Code, relating to
disaster losses, may be made on a return or amended return filed on
or before the due date of the return, determined with regard to any
extension of time for filing the return, for the taxable year in
which the disaster occurred.
(2) Notwithstanding Section 18572, this subdivision shall apply to
any loss described in subdivision (a).
(c) Unless specifically provided otherwise, any law, other than
Section 17276.20, that suspends, defers, reduces, or otherwise
diminishes the deduction of a net operating loss shall not apply to a
net operating loss attributable to the loss described in subdivision
(a).
(d) This section shall remain in effect only until December 1,
2024, and as of that date is repealed.
SEC. 3. Section 24347.14 is added to the Revenue and Taxation
Code, to read:
24347.14. (a) For taxable years beginning on or after January 1,
2014, and before January 1, 2024, Section 165(i) of the Internal
Revenue Code, relating to disaster losses, shall be applicable to any
loss sustained as a result of any disaster occurring in any city,
county, or city and county in this state that is proclaimed by the
Governor to be in a state of emergency.
(b) (1) For losses described in subdivision (a), the election
under Section 165(i) of the Internal Revenue Code, relating to
disaster losses, may be made on a return or amended return filed on
or before the due date of the return, determined with regard to any
extension of time for filing the return, for the taxable year in
which the disaster occurred.
(2) Notwithstanding Section 18572, this subdivision shall apply to
any loss described in subdivision (a).
(c) Unless specifically provided otherwise, any law, other than
Section 24416.20, that suspends, defers, reduces, or otherwise
diminishes the deduction of a net operating loss shall not apply to a
net operating loss attributable to the loss described in subdivision
(a).
(d) This section shall remain in effect only until December 1,
2024, and as of that date is repealed.
SEC. 4. The Legislature finds and declares that this act fulfills
a statewide public purpose because it is consistent with, and
supplements, the proclaimed disaster assistance and relief by
providing necessary tax relief to persons in the affected
jurisdictions by allowing them to maintain essential basic services
and repair damage to, and restore, their homes and businesses.
SEC. 5. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
