California Senate Bill SB35 Amended / Bill

 BILL NUMBER: SB 35AMENDED 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.