BILL ANALYSIS �
AB 2332
Page 1
Date of Hearing: May 16, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2332 (Monning) - As Amended: April 12, 2012
Policy Committee: Revenue and
Taxation Vote: 8-0
Urgency: Yes State Mandated Local
Program:NoReimbursable:
SUMMARY
This bill provides that any losses sustained in the County of
Santa Cruz as a result of the severe storms that occurred in
March 2011 may, at the taxpayer's election, be taken into
account for the taxable year immediately preceding the taxable
year in which the disaster occurred.
FISCAL EFFECT
The Franchise Tax Board estimates there will be minor revenue
impacts from the bill.
COMMENTS
1)Purpose . Between March 15 and 27, 2011, California was struck
by a devastating storm, destroying and damaging public
facilities and private property throughout the state. Santa
Cruz County sustained $15 million in damage, 30% of the
statewide total. In order to provide timely relief for those
who sustained damage or loss as a result of the storm, AB 2332
is an urgency measure.
2)2011 Storms : In March 2011, the County of Santa Cruz was
struck by a severe storm that brought heavy rain, high winds,
and flooding, damaging or destroying both public facilities
and private property throughout the county. The county
sustained roughly $15 million in damage.
In April 2011, Governor Brown issued an Emergency Proclamation
for this storm and asked the federal government to declare the
event a major disaster. California's request to the Federal
AB 2332
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Emergency Management Agency was denied, along with the state's
subsequent appeal of this decision.
For disasters that were the subject of a governor's
proclamation, but not the subject of a presidential disaster
declaration, enactment of state law identifying a specific
event as a disaster for state tax law purposes authorizes
effected taxpayers to elect to deduct disaster losses on the
return for the prior taxable year.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081