BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  SB 1544|
          |Office of Senate Floor Analyses   |                         |
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                                    CONSENT


          Bill No:  SB 1544
          Author:   Hernandez (D)
          Amended:  5/2/12
          Vote:     21

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  :  9-0, 5/9/12
          AYES:  Wolk, Dutton, DeSaulnier, Fuller, Hancock, 
            Hernandez, Kehoe, La Malfa, Liu

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


            SUBJECT  :    Income taxes:  disaster losses:  Counties of 
                      Los Angeles and San Bernardino

           SOURCE :     Author


           DIGEST  :    This bill affords disaster loss treatment to 
          taxpayers in the Counties of Los Angeles and San Bernardino 
          affected by severe winds in 2011.

           ANALYSIS  :    Federal law, which California conforms to, 
          only allows disaster loss deductions for personal income 
          taxes that exceed $100 per taxpayer and 10% of their 
          adjusted gross income for the year.  Existing state and 
          federal law 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. 

          This bill allows taxpayers in the Counties of Los Angeles 
          and San Bernardino that suffered disaster losses as a 
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          result of the severe winds that occurred in November, 2011 
          to file an amended return by October 15, 2012 for the 2011 
          taxable year to deduct the loss and reduce prior year tax 
          liability.  This bill provides that these losses shall not 
          be suspended, deferred, reduced, or otherwise diminished 
          unless provided otherwise.

           Comments
           
          According to the author, "Beginning on November 30, 2011, a 
          powerful wind storm blew through Los Angeles County and 
          much of the San Gabriel Valley, toppling trees, downing 
          power lines, slowing traffic, damaging homes and vehicles, 
          and knocking out electricity for over 350,000 customers.  
          On December 9, 2011, due to the severity of the winds, the 
          Governor declared these events a State of Emergency, 
          qualifying Los Angeles County windstorm victims for future 
          and immediate tax relief.  This bill would simply give 
          affected residents and businesses the same tax treatment 
          that has been afforded to other Californians afflicted by 
          other declared State of Emergencies."

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No


          AGB:kc  5/22/12   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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