SB 35, as introduced, Wolk. Income and corporation taxes: deductions: disaster relief: Counties of Napa, Solano, and Sonoma.
The Personal Income Tax Law and the Corporation Tax Law provide for a deduction and 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. Those laws further 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.
This bill would extend these provisions to losses sustained in the Counties of Napa, Solano, and Sonoma as a result of the earthquake that occurred in August 2014 for which the Governor proclaimed a state of emergency.
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.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 17207.14 is added to the Revenue and
2Taxation Code, to read:
(a) Section 165(i) of the Internal Revenue Code
4shall be applicable to any losses sustained in the Counties of Napa,
5Solano, and Sonoma as a result of the earthquake that occurred in
6August 2014.
7(b) For losses described in subdivision (a), the election under
8Section 165(i) of the Internal Revenue Code may be made on a
9return or amended return filed on or before the due date of the
10return, determined with regard to extension, for the taxable year
11in which the disaster occurred.
12(c) Unless specifically provided otherwise, any law, other than
13Section 17276.20, that suspends, defers, reduces, or otherwise
14diminishes the deduction of a net operating loss
shall not apply to
15a net operating loss attributable to the loss described in subdivision
16(a).
Section 24347.14 is added to the Revenue and Taxation
18Code, to read:
(a) Section 165(i) of the Internal Revenue Code
20shall be applicable to any losses sustained in the Counties of Napa,
21Solano, and Sonoma as a result of the earthquake that occurred in
22August 2014.
23(b) For losses described in subdivision (a), the election under
24Section 165(i) of the Internal Revenue Code may be made on a
25return or amended return filed on or before the due date of the
26return, determined with regard to extension, for the taxable year
27in which the disaster occurred.
28(c) Unless specifically provided otherwise, any law, other than
29Section 24416.20, that suspends, defers, reduces, or otherwise
30diminishes the deduction of a net operating loss
shall not apply to
31a net operating loss attributable to the loss described in subdivision
32(a).
The Legislature finds and declares that this act fulfills
34a statewide public purpose because of both of the following:
35(a) On August 24, 2014, the Governor of California proclaimed
36a state of emergency due to the South Napa Earthquake that
37occurred in August 2014 within the Counties of Napa, Solano, and
P3 1Sonoma, thus qualifying affected persons for various forms of
2governmental assistance and relief.
3(b) This act is consistent with, and supplements, the proclaimed
4disaster assistance and relief by providing necessary tax relief to
5persons in the affected jurisdictions by allowing them to allow
6them to maintain essential basic services and repair damage to,
7and restore, their
homes and businesses.
This act provides for a tax levy within the meaning of
9Article IV of the Constitution and shall go into immediate effect.
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