Bill Text: CA SB343 | 2017-2018 | Regular Session | Amended

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

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Bill Title: Income taxes: gross income exclusions: Kast Property Tank Farm facility cleanup.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2018-09-28 - Chaptered by Secretary of State. Chapter 887, Statutes of 2018. [SB343 Detail]

Download: California-2017-SB343-Amended.html

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Amended  IN  Senate  July 06, 2017

Amended  IN  Senate  June 08, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill

No. 343

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Introduced by Senator Bradford

February 14, 2017

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An act to amend Section 17073 of, and to add Section 17138.4 to Sections 17138.4, 17209, 24308.8, and 24347.15 to, the Revenue and Taxation Code, relating to taxation, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL'S DIGEST

SB 343, as amended, Bradford. Personal income Income taxes: gross income exclusion: exclusions: deductions: Kast Property Tank Farm facility cleanup.

The

(1) The Personal Income Tax Law, Law and the Corporation Tax Law, in conformity with federal income tax law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income.

This bill would provide an exclusion from gross income for any qualified amount, as defined, received by a taxpayer, including amounts received by a taxpayer, directly or indirectly, during the remediation of the Carousel Housing Tract, as provided, and qualified taxpayer, which means a person that currently owns or owned real property within the Carousel Housing Tract in Carson California or that resides or resided within that tract for amounts received for costs associated with temporary accommodations and from a settlement, as provided. The bill would make legislative findings and declarations regarding the public purpose served by the bill.

(2) The Personal Income Tax Law and the Corporation Tax Law allow various deductions in computing the income that is subject to the taxes imposed by that law.

This bill would allow as a deduction an amount equal to any unreimbursed expenses incurred by a qualified taxpayer during the taxable year for qualified amounts, as provided.

(3) This bill would apply its provisions to taxable years beginning before, on, and after the effective date of this bill. The bill would make legislative findings and declarations regarding the public purpose served by this bill.

This bill would declare that it is to take effect immediately as an urgency statute.

Digest Key

Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 The Legislature finds and declares all of the following:

(a) On March 11, 2011, the Regional Water Quality Control Board, Los Angeles Regional Board issued Order R4-2011-046 requiring Shell Oil Company to investigate, clean up, and abate waste discharged at the former Kast Property Tank Farm facility located southeast of the intersection of Marbella Avenue and East 244th Street in Carson, California. This site was later developed into a residential housing development known as the Carousel Housing Tract by Barclay Hollander Curci, Inc., and Lomita Development Company.

(b) Shell Oil Company is complying with the order and working to minimize inconvenience to residents living in affected homes and compensate those residents for any resulting expenses.

SEC. 2.Section 17138.4 is added to the Revenue and Taxation Code, to read:

17138.4.

(a)Gross income does not include any qualified amount received by a taxpayer.

(b)For purposes of this section, “qualified amount” means all of the following:

(1)Amounts received by a taxpayer, directly or indirectly, during the remediation of the Carousel Housing Tract from Shell Oil Company for costs associated with temporary accommodations and relocation pursuant to Regional Water Quality Control Board Order R4-2011-046. These costs include, but are not limited to, hotel expenses, including meal reimbursement, mileage reimbursement, parking expenses, pet boarding fees, Internet connectivity and access fees, electric vehicle charging fees, laundry fees, expenses related to staying with friends or family during remediation, expenses related to renting another home for a lease term including the purchase of housewares, appliances, pet fees, furniture rental, utility fees, and moving expenses, a mileage allowance or costs related to alternative transportation for a taxpayer whose child or children attend relocated area schools until the date the taxpayer exited the relocation program, moving expenses, and expenses related to cleaning the interior of an affected home or vehicle.

(2)Notwithstanding any other law, amounts equal to any unreimbursed expenses related to Regional Water Quality Control Board Order R4-2011-046.

(3)Notwithstanding any other law, the proceeds from a settlement arising out of the investigation, clean up, or abatement of the waste discharged at the former Kast Property Tank Farm, Regional Water Quality Control Board Order R4-2011-046, or any combination thereof.

SEC. 2.

 Section 17073 of the Revenue and Taxation Code is amended to read:

17073.

 (a) Section 63 of the Internal Revenue Code, relating to taxable income defined, shall apply, except as otherwise provided.

(b) The deduction allowed by Section 17208.1, relating to interest on loans or financed indebtedness obtained from a publicly owned utility for the purchase and installation of energy efficient products or equipment, may not be treated as a miscellaneous itemized deduction under Section 67(a) of the Internal Revenue Code, relating to the 2-percent floor on miscellaneous deductions.

(c) The deduction allowed by Section 17209 shall not be treated as a miscellaneous itemized deduction under Section 67(a) of the Internal Revenue Code, relating to the 2-percent floor on miscellaneous deductions, nor shall it be otherwise allowed as an itemized deduction under any of the provisions described in Section 67(b) of the Internal Revenue Code, relating to miscellaneous itemized deductions.

(c)

(d) For individuals who do not itemize deductions, the standard deduction computed in accordance with Section 17073.5 shall be allowed as a deduction in computing taxable income.

SEC. 3.

 Section 17138.4 is added to the Revenue and Taxation Code, to read:

17138.4.

 (a) Gross income does not include any qualified amount received by a qualified taxpayer.

(b) For purposes of this section:

(1) The term “qualified amount” includes any of the following:

(A) Amounts received by a qualified taxpayer during the remediation of the Carousel Housing Tract, located in Carson, California, from the Shell Oil Company for costs associated with temporary accommodations and relocation pursuant to Regional Water Quality Control Board Order R4-2011-046. These costs include all amounts paid under the Temporary Living Assistance section of the Revised Remedial Action Plan, Relocation Plan, developed by URS Corporation for Shell Oil Products U.S., dated September 19, 2014.

(B) Amounts received by a qualified taxpayer paid under the Optional Real Estate Program of the Revised Remedial Action Plan, Relocation Plan, developed by URS Corporation for Shell Oil Products U.S., dated September 19, 2014.

(C) Any amounts received by a qualified taxpayer from a settlement arising out of the investigation, cleanup, or abatement of the waste discharged at the former Kast Property Tank Farm facility pursuant to Regional Water Quality Control Board Order R4-2011-046.

(2) The term “qualified amount” does not include any reimbursed amounts representing any expenses related to Regional Water Quality Control Board Order R4-2011-046 that were deducted under Section 17209 or any other section under this part.

(c) For purposes of this section, “qualified taxpayer” means either of the following:

(1) Any taxpayer that currently owns or previously owned real property located within the Carousel Housing Tract, located in Carson, California, who received amounts, incurred expenses, or received amounts from a settlement arising out of or pursuant to Regional Water Quality Control Board Order R4-2011-046.

(2) Any taxpayer that currently resides or previously resided within the Carousel Housing Tract, located in Carson, California, who received amounts, incurred expenses, or received amounts from a settlement arising out of or pursuant to Regional Water Quality Control Board Order R4-2011-046.

(d) The payor under the Revised Remedial Action Plan, Relocation Plan, developed by URS Corporation for Shell Oil Products U.S., dated September 19, 2014, and the payor or payors of the settlement proceeds arising out of or pursuant to Regional Water Quality Control Board Order R4-2011-046, shall provide, upon request by the Franchise Tax Board, an annual list of names, addresses, payment dates, and amounts paid to qualified taxpayers.

(e) (1) This section shall apply to taxable years beginning before, on, or after the effective date of the act adding this section.

(2) If the credit or refund of any overpayment of tax resulting from the application of this section to a period before the effective date of this section is prevented as of such date by the operation of any law or rule of law, including res judicata, such credit or refund may nevertheless be allowed or made if the claim therefor is filed before the close of the one-year period beginning on the effective date of the act adding this section.

SEC. 4.

 Section 17209 is added to the Revenue and Taxation Code, to read:

17209.

 (a) In computing taxable income, there shall be allowed as a deduction an amount equal to any unreimbursed expenses incurred by a qualified taxpayer as defined by subdivision (c) of Section 17138.4, during the taxable year for qualified amounts as defined in paragraph (1) of subdivision (b) of Section 17138.4.

(b) (1) This section shall apply to taxable years beginning before, on, or after the effective date of the act adding this section.

(2) If the credit or refund of any overpayment of tax resulting from the application of this section to a period before the effective date of this section is prevented as of such date by the operation of any law or rule of law, including res judicata, such credit or refund may nevertheless be allowed or made if the claim therefor is filed before the close of the one-year period beginning on the effective date of the act adding this section.

SEC. 5.

 Section 24308.8 is added to the Revenue and Taxation Code, to read:

24308.8.

 (a) Gross income does not include any qualified amount received by a qualified taxpayer.

(b) For purposes of this section:

(1) The term “qualified amount” includes any of the following:

(A) Amounts received by a qualified taxpayer during the remediation of the Carousel Housing Tract, located in Carson, California, from Shell Oil Company for costs associated with temporary accommodations and relocation pursuant to Regional Water Quality Control Board Order R4-2011-046. These costs include all amounts paid under the Temporary Living Assistance section of the Revised Remedial Action Plan, Relocation Plan, developed by URS Corporation for Shell Oil Products U.S., dated September 19, 2014.

(B) Amounts received by a qualified taxpayer paid under the Optional Real Estate Program of the Revised Remedial Action Plan, Relocation Plan, developed by URS Corporation for Shell Oil Products U.S., dated September 19, 2014.

(C) Any amounts received by a qualified taxpayer from a settlement arising out of the investigation, cleanup, or abatement of the waste discharged at the former Kast Property Tank Farm facility pursuant to Regional Water Quality Control Board Order R4-2011-046.

(2) The term “qualified amount” does not include reimbursed amounts representing any expenses related to Regional Water Quality Control Board Order R4-2011-046 that were deducted under Section 24347.15 or any other section under this part.

(c) For purposes of this section, “qualified taxpayer” means any taxpayer that currently owns or previously owned real property located within the Carousel Housing Tract, located in Carson, California, who received amounts, incurred expenses, or received amounts from a settlement arising out of or pursuant to Regional Water Quality Control Board Order R4-2011-046.

(d) The payor under the Revised Remedial Action Plan, Relocation Plan, developed by URS Corporation for Shell Oil Products U.S., dated September 19, 2014, and the payor or payors of the settlement proceeds arising out of or pursuant to Regional Water Quality Control Board Order R4-2011-046, shall provide, upon request by the Franchise Tax Board, an annual list of names, addresses, payment dates, and amounts paid to qualified taxpayers.

(e) (1) This section shall apply to taxable years beginning before, on, or after the effective date of the act adding this section.

(2) If the credit or refund of any overpayment of tax resulting from the application of this section to a period before the effective date of this section is prevented as of such date by the operation of any law or rule of law, including res judicata, such credit or refund may nevertheless be allowed or made if the claim therefor is filed before the close of the one-year period beginning on the effective date of the act adding this section.

SEC. 6.

 Section 24347.15 is added to the Revenue and Taxation Code, to read:

24347.15.

 (a) In computing net income, there shall be allowed as a deduction an amount equal to any unreimbursed expenses incurred by a qualified taxpayer as defined in subdivision (c) of Section 24308.8, during the taxable year for qualified amounts as defined in paragraph (1) of subdivision (b) of Section 24308.8.

(b) (1) This section shall apply to taxable years beginning before, on, or after the effective date of the act adding this section.

(2) If the credit or refund of any overpayment of tax resulting from the application of this section to a period before the effective date of this section is prevented as of such date by the operation of any law or rule of law, including res judicata, such credit or refund may nevertheless be allowed or made if the claim therefor is filed before the close of the one-year period beginning on the effective date of the act adding this section.

SEC. 3.SEC. 7.

 The Legislature finds and declares that Section 17138.4 Sections 17138.4, 17209, 24308.8, and 24347.15 of the Revenue and Taxation Code, as added by this act, is are necessary for the public purpose of preventing undue hardship to taxpayers who reside in the Carousel Housing Tract of Carson, California, and does do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.

SEC. 4.SEC. 8.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:

In order to provide essential relief to those persons who have suffered inconvenience and expenses resulting from the cleanup of waste discharged at the former Kast Property Tank Farm facility located southeast of the intersection of Marbella Avenue and East 244th Street in Carson, California, it is necessary that this act take effect immediately.