BILL NUMBER: SB 35	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 4, 2015

INTRODUCED BY   Senator Wolk
   (Principal coauthor: Assembly Member Dodd)

                        DECEMBER 1, 2014

   An act to add Sections 17207.14 and 24347.14 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 35, as amended, Wolk. Income and corporation taxes: deductions:
disaster  relief: Counties of Napa, Solano, and Sonoma.
  relief. 
   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  , for other disasters for which a
specific law has been enacted,  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  , 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,  extend  these   the 
provisions  relating  to  disaster  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   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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  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,  Section 165(i) of the Internal Revenue Code
 , relating to disaster losses,  shall be applicable to any
 losses   loss  sustained  in the
Counties of Napa, Solano, and Sonoma as a result of the earthquake
that occurred in August 2014   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).
  SEC. 2.  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,  Section 165(i) of the Internal Revenue Code
 , relating to disaster losses,  shall be applicable to any
 losses   loss  sustained  in the
Counties of Napa, Solano, and Sonoma as a result of the earthquake
that occurred in August 2014.   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).
  SEC. 3.  The Legislature finds and declares that this act fulfills
a statewide public purpose because  of both of the following:
  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.  
   (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) 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 allow them
to maintain essential basic services and repair damage to, and
restore, their homes and businesses. 
  SEC. 4.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.