BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1568|
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THIRD READING
Bill No: AB 1568
Author: Salas (D)
Amended: 9/4/09 in Senate
Vote: 21
ASSEMBLY FLOOR : Not relevant
SUBJECT : Taxation: disaster relief
SOURCE : Author
DIGEST : This bill provides that any dwelling that
qualified for a homeowners property tax exemption prior to
the commencement dates of the wildfires that were the
subject of the Governors proclamations in October 2008,
November 2008, and May 2009, that was damaged or destroyed
by the wildfires in the Counties of Los Angeles, Orange,
Riverside, San Bernardino, Ventura, and Santa Barbara, and
that has not changed ownership since the commencement date
of those wildfires, 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.
ANALYSIS : Existing property tax law provides, pursuant
to a specified provision of the California Constitution,
for a homeowner's property tax exemption in the amount of
$7,000 of the full value of a "dwelling," as defined.
CONTINUED
AB 1568
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This bill also provides that any dwelling that qualified
for the exemption prior to the commencement dates of the
wildfires that were the subject of the Governor's
proclamations in October 2008, November 2008, and May 2009,
that was damaged or destroyed by the wildfires in the
Counties of Los Angeles, Orange, Riverside, San Bernardino,
Ventura, and Santa Barbara, and that has not changed
ownership since the commencement date of those wildfires,
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.
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 states the intent of the Legislature to make this
required reimbursement in the annual Budget Act.
This bill provides 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.
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 extends Personal Income Tax Law and the
Corporation Tax Law carryover losses as a result of certain
disasters occurring in California, as specified, to losses
sustained in the Counties of Los Angeles, Orange,
Riverside, San Bernardino, Ventura, and Santa Barbara as a
result of the wildfires that commenced in October 2008,
November 2008, or May 2009. This bill authorizes a
taxpayer to make an election to claim a deduction for those
losses on the tax return for the preceding year.
AB 1568
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FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
DLW:mw 9/10/09 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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