Bill Text: CA SB927 | 2023-2024 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Income taxes: gross income exclusions: state of emergency: natural disaster settlements.

Spectrum: Moderate Partisan Bill (Republican 5-1)

Status: (Introduced) 2024-05-16 - May 16 hearing: Held in committee and under submission. [SB927 Detail]

Download: California-2023-SB927-Introduced.html

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CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 927

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Introduced by Senator Dahle

January 12, 2024

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An act to add Sections 17139.4 and 24309.8 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL'S DIGEST

SB 927, as introduced, Dahle. Income taxes: gross income exclusions: state of emergency: natural disaster settlements.

The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally defines gross income as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income.

This bill, for taxable years beginning on or after January 1, 2023, would provide an exclusion from gross income for amounts received in settlement by a taxpayer to replace property damaged or destroyed by a natural disaster that was declared a state of emergency by both the Governor and the President of the United States.

Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill would include additional information required for any bill authorizing a new tax expenditure.

This bill would take effect immediately as a tax levy.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 17139.4 is added to the Revenue and Taxation Code, to read:

17139.4.

 (a) For taxable years beginning on or after January 1, 2023, gross income does not include any qualified amount received by a taxpayer.

(b) For purposes of this section, “qualified amount” means any amount received in settlement by a taxpayer to replace property damaged or destroyed by a natural disaster that was declared a state of emergency by both the Governor and the President of the United States.

(c) The taxpayer shall provide, upon request by the Franchise Tax Board, documentation of the settlement payments in the form and manner requested by the Franchise Tax Board.

(d) (1) For the purpose of complying with Section 41 in regards to the exclusion provided by this section and Section 24309.8, the Legislature finds and declares the following:

(A) The specific goal, purpose, and objective of the exclusion is to provide essential relief to individuals who have suffered injury, loss, inconvenience, and expenses resulting from natural disasters.

(B) The performance indicators for the Legislature to use in determining whether the exclusion achieves the stated goal, purpose, and objective shall be the number of taxpayers that excluded qualified amounts from gross income.

(2) (A) On December 1, 2028, and every five years thereafter, the Franchise Tax Board shall deliver to the Legislature a written report that includes, to the extent feasible, the number of taxpayers that excluded qualified amounts from gross income as a result of the exclusion.

(B) The report required by this paragraph shall be delivered to the Legislature in compliance with Section 9795 of the Government Code.

(C) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542.

SEC. 2.

 Section 24309.8 is added to the Revenue and Taxation Code, to read:

24309.8.

 (a) For taxable years beginning on or after January 1, 2023, gross income does not include any qualified amount received by a taxpayer.

(b) For purposes of this section, “qualified amount” means any amount received in settlement by a taxpayer to replace property damaged or destroyed by a natural disaster that was declared a state of emergency by both the Governor and the President of the United States.

(c) The taxpayer shall provide, upon request by the Franchise Tax Board, documentation of the settlement payments in the form and manner requested by the Franchise Tax Board.

SEC. 3.

 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.