BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 922|
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THIRD READING
Bill No: AB 922
Author: Maienschein (R)
Amended: 6/25/14 in Senate
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 7-0, 6/18/14
AYES: Wolk, Knight, Beall, DeSaulnier, Hernandez, Liu, Walters
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : Prior votes not relevant
SUBJECT : Income taxes: deductions: disaster relief: County
of San Diego
SOURCE : Author
DIGEST : This bill allows taxpayers affected by wildfires
occurring in the County of San Diego in 2014 who incurred losses
during the state of emergency declared by the Governor to carry
back those losses to the 2013 taxable year. This bill also
allows affected taxpayers to file an amended return on or before
the extended due dates for the 2014 taxable year.
ANALYSIS : Federal law, which California conforms to, allows
disaster loss deductions for personal income taxes that exceed
$100 per taxpayer and 10% of their adjusted gross income for the
year. Current 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
CONTINUED
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disaster.
Starting with the forest fires in 1985, and approximately 50
times thereafter for various disasters, the Legislature enacted
measures that provide treatment identical to Presidentially
declared disasters by allowing affected taxpayer to file amended
returns, carry-forward 100% of excess disaster losses for
fifteen years, and apply losses in the previous taxable year
before applying them to taxes in the current taxable year.
This bill allows taxpayers affected by wildfires occurring in
the County of San Diego in 2014 who incurred losses during the
state of emergency declared by the Governor to carry back those
losses to the 2013 taxable year. This bill also allows affected
taxpayers to file an amended return on or before the extended
due dates for the 2014 taxable year.
This bill allows San Diego taxpayers that incurred a net
operating loss as a result of the San Diego fires in 2014 to
elect to carry back 100% of the net operating loss to the
preceding two taxable years.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/5/14)
San Diego County Board of Supervisors
San Diego Regional Chamber of Commerce
ARGUMENTS IN SUPPORT : According to the author, "May 5, 2014
marks the beginning of what could possibly be one of the most
devastating fire seasons in San Diego County. In nearly three
weeks, roughly 29,000 acres burned across the county from 19
separate fires. Conditions were intensified by high temperatures
and the Santa Ana winds. It has been estimated that these fires
have cost nearly $30 million in damage and destruction to
personal and private property and an-other $30 million to fight
the fires. Homes, schools and businesses experienced
evacuation, and residents had their lives turned upside down.
On May 15, 2014 Governor Brown declared a State of Emergency in
San Diego County in response to the disastrous string of fires
that ripped through the county. This bill allows residents of
San Diego County that suffered losses to their homes and
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businesses during the wildfires of May 2014 to elect to claim a
deduction for those losses on the previous year's tax return by
filing an amended return of that year's taxes resulting in an
expedited payment for their losses. In addition, any losses in
excess of the limits of that taxable year can be carried forward
for a maximum of the following 20 years as loss deductions up to
100% of the disaster losses reported during the San Diego County
fires started in May of 2014. This bill will help those
individuals who have suffered a great loss during this state
declared disaster to get back on their feet. It helps to ease
the pain felt by those who have lost more than the state can
ever replace and at least offer a small comfort."
AB:d 8/6/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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