BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1428| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 1428 Author: Chesbro (D) Amended: 5/24/11 in Assembly Vote: 27 - Urgency SENATE GOVERNANCE & FINANCE COMMITTEE : 9-0, 06/29/11 AYES: Wolk, Huff, DeSaulnier, Fuller, Hancock, Hernandez, Kehoe, La Malfa, Liu SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 76-0, 06/01/11 - See last page for vote SUBJECT : Disaster relief: tsunami SOURCE : Author DIGEST : This bill applies excess disaster loss treatment to victims in Mendocino County of the March 2011 tsunami. Taxpayers can carry forward 100 percent of losses for 15 years, and claim losses on amended returns. ANALYSIS : Federal law, which California conforms to, only allows disaster loss deductions for personal income taxes that exceed $100 per taxpayer and 10 percent of their adjusted gross income for the year. Current state and federal allows taxpayers to deduct them in the year the loss occurs or in the preceding year by filing an amended return, but only when the President declares a disaster. CONTINUED AB 1428 Page 2 This bill applies excess disaster loss treatment to victims in Mendocino County of the March, 2011 tsunami. Taxpayers can carry forward 100 percent of losses for 15 years, and claim losses on amended returns. Comments As introduced, this bill applied to both Del Norte and Mendocino County. However, on March 16th, 2011, President Obama declared Del Norte County a federal disaster area, automatically triggering excess disaster losses for taxpayers in Del Norte County by virtue of state law's conformity to federal. Because of the declaration, the Legislature need only enact a specific statute for Mendocino County taxpayers. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 8/15/11) Del Norte County Board of Supervisors Mendocino County Board of Supervisors ARGUMENTS IN SUPPORT : According to the author, "AB 1428 provides relief for the individuals and companies that were negatively affected by the Tsunami that occurred March 10th as a result of the 9.0 earthquake. This measure would help relieve some of the pressure and allow those who were affected to carry over losses beyond what they could deduct in a given year." ASSEMBLY FLOOR : 76-0, 06/01/11 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Beth Gaines, Galgiani, Gatto, Gordon, Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, Jones, Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, AB 1428 Page 3 Perea, Portantino, Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Garrick, Gorell, Jeffries, V. Manuel Pérez AGB:nl 8/16/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****