Bill Text: CA AB2332 | 2011-2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Income taxes: deductions: disaster losses: County of

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2012-08-27 - Chaptered by Secretary of State - Chapter 203, Statutes of 2012. [AB2332 Detail]

Download: California-2011-AB2332-Introduced.html

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BILL NUMBER: AB 2332	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Monning

                        FEBRUARY 24, 2012

   An act to amend Sections 17207.6 and 24347.9 of the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2332, as introduced, Monning. Income taxes: deductions:
disaster losses: County of Santa Cruz.
   The Personal Income Tax Law and the Corporation Tax Law provide
for 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 proclaimed by the Governor to be in
a state of emergency.
   This bill would extend these provisions to losses sustained in the
County of Santa Cruz as a result of the severe storms that occurred
in March 2011. This bill would authorize a taxpayer to make an
election to claim a deduction for those losses on the tax return for
the preceding year.
   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 17207.6 of the Revenue and Taxation Code is
amended to read:
   17207.6.  (a) An excess disaster loss, as defined in subdivision
(c), shall be carried to other taxable years as provided in
subdivision (b), with respect to losses resulting from any of the
following disasters:
   (1) Any loss sustained in the Counties of Los Angeles and Monterey
as a result of wildfires that commenced in August 2009.
   (2) Any loss sustained in the County of Placer as a result of
wildfires that commenced in August 2009.
   (3) Any loss sustained in the Counties of Calaveras, Imperial, Los
Angeles, Orange, Riverside, San Bernardino, San Francisco, and
Siskiyou as a result of winter storms that commenced in January 2010.

   (4) Any loss sustained in the County of Kern as a result of the
wildfires that commenced in July 2010. 
   (5) Any loss sustained in the County of Santa Cruz as a result of
the severe storms that occurred in March 2011. 
   (b) (1) In the case of any loss allowed under Section 165(c) of
the Internal Revenue Code, relating to limitation of losses of
individuals, any excess disaster loss shall be carried forward to
each of the five taxable years following the taxable year for which
the loss is claimed. However, if there is any excess disaster loss
remaining after the five-year period, then the applicable percentage,
as set forth in paragraph (1) of subdivision (b) of Section 17276,
of that excess disaster loss shall be carried forward to each of the
next 10 taxable years.
   (2) The entire amount of any excess disaster loss as defined in
subdivision (c) shall be carried to the earliest of the taxable years
to which, by reason of subdivision (b), the loss may be carried. The
portion of the loss which shall be carried to each of the other
taxable years shall be the excess, if any, of the amount of excess
disaster loss over the sum of the adjusted taxable income for each of
the prior taxable years to which that excess disaster loss is
carried.
   (c) "Excess disaster loss" means a disaster loss computed pursuant
to Section 165 of the Internal Revenue Code which exceeds the
adjusted taxable income of the year of loss or, if the election under
Section 165(i) of the Internal Revenue Code is made, the adjusted
taxable income of the year preceding the loss.
   (d) The provisions of this section and Section 165(i) of the
Internal Revenue Code shall be applicable to any of the losses listed
in subdivision (a) sustained in any county or city in this state
which was proclaimed by the Governor to be in a state of disaster.
   (e) Losses allowable under this section may not be taken into
account in computing a net operating loss deduction under Section 172
of the Internal Revenue Code.
   (f) For purposes of this section, "adjusted taxable income" shall
be defined by Section 1212(b)(2)(B) of the Internal Revenue Code.
   (g) For losses described in subdivision (a), the election under
Section 165(i) of the Internal Revenue Code may be made on a return
or amended return filed on or before the due date of the return
(determined with regard to extension) for the taxable year in which
the disaster occurred.
  SEC. 2.  Section 24347.9 of the Revenue and Taxation Code is
amended to read:
   24347.9.  (a) An excess disaster loss, as defined in subdivision
(c), shall be carried to other taxable years as provided in
subdivision (b), with respect to losses resulting from any of the
following disasters:
   (1) Any loss sustained in the Counties of Los Angeles and Monterey
as a result of wildfires that commenced in August 2009.
   (2) Any loss sustained in the County of Placer as a result of
wildfires that commenced in August 2009.
   (3) Any loss sustained in the Counties of Calaveras, Imperial, Los
Angeles, Orange, Riverside, San Bernardino, San Francisco, and
Siskiyou as a result of winter storms that commenced in January 2010.

   (4) Any loss sustained in the County of Kern as a result of the
wildfires that commenced in July 2010. 
   (5) Any loss sustained in the County of Santa Cruz as a result of
the severe storms that occurred in March 2011. 
   (b) (1) In the case of any loss allowed under Section 165 of the
Internal Revenue Code, relating to losses, any excess disaster loss
shall be carried forward to each of the five taxable years following
the taxable year for which the loss is claimed. However, if there is
any excess disaster loss remaining after the five-year period, then
the applicable percentage, as set forth in paragraph (1) of
subdivision (b) of Section 24416, of that excess disaster loss shall
be carried forward to each of the next 10 taxable years.
   (2) The entire amount of any excess disaster loss as defined in
subdivision (c) shall be carried to the earliest of the taxable years
to which, by reason of subdivision (b), the loss may be carried. The
portion of the loss which shall be carried to each of the other
taxable years shall be the excess, if any, of the amount of excess
disaster loss over the sum of the net income for each of the prior
taxable years to which that excess disaster loss is carried.
   (c) "Excess disaster loss" means a disaster loss computed pursuant
to Section 165 of the Internal Revenue Code, which exceeds the net
income of the year of loss or, if the election under Section 165(i)
of the Internal Revenue Code is made, the net income of the year
preceding the loss.
   (d) The provisions of this section and Section 165(i) of the
Internal Revenue Code shall be applicable to any of the losses listed
in subdivision (a) sustained in any county or city in this state
which was proclaimed by the Governor to be in a state of disaster.
   (e) Any corporation subject to the provisions of Section 25101 or
25101.15 that has disaster losses pursuant to this section, shall
determine the excess disaster loss to be carried to other taxable
years under the principles specified in Section 25108 relating to net
operating losses.
   (f) Losses allowable under this section may not be taken into
account in computing a net operating loss deduction under Section 172
of the Internal Revenue Code.
   (g) For losses described in subdivision (a), the election under
Section 165(i) of the Internal Revenue Code may be made on a return
or amended return filed on or before the due date of the return
(determined with regard to extension) for the taxable year in which
the disaster occurred.
  SEC. 3.  The Legislature finds and declares that this act fulfills
a statewide public purpose because all of the following:
   (a) On April 15, 2011, the Governor of California made a finding
that conditions of extreme peril to public health and safety to
persons and property exist due to the severe storms occurring in
March 2011 in the County of Santa Cruz and proclaimed a state of
emergency to exist within that county, 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
the affected jurisdiction and persons 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.