BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1544
                                                                  Page  1

          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   SB 1544 (Hernandez) - As Amended:  May 2, 2012 

          Policy Committee:                             Revenue and 
          Taxation     Vote:                            9-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill provides that any losses sustained in the Counties of 
          Los Angeles and San Bernardino as a result of the severe winds 
          that occurred in November 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  .  The author recounts that beginning on November 30, 
            2011, a powerful wind storm blew through portions of Los 
            Angeles and San Bernardino Counties, toppling trees, downing 
            power lines, slowing traffic, damaging homes and vehicles and 
            knocking out electricity for over 350,000 customers.  The 
            impact of the storms was sufficient that Governor Brown 
            declared a State of Emergency, qualifying windstorm victims 
            for future and immediate tax relief.  The author argues this 
            bill would simply give affected residents and businesses the 
            same tax treatment that has been afforded to other 
            Californians afflicted by other calamities resulting in a 
            declared state of emergency.

           2)Background  .  For disasters that are 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 








                                                                  SB 1544
                                                                  Page  2

            authorizes effected taxpayers to elect to deduct disaster 
            losses on the return for the prior taxable year.

           3)There is no registered opposition to this bill.
           


           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081