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AB-1651 Income taxes: deductions: loss of fair market value.(2013-2014)

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Amended  IN  Assembly  April 02, 2014

CALIFORNIA LEGISLATURE— 2013–2014 REGULAR SESSION

Assembly Bill
No. 1651

Introduced by Assembly Member Donnelly
(Principal coauthor: Assembly Member Grove)

February 11, 2014

An act to add Sections 17239 and 24356.9 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 1651, as amended, Donnelly. Income taxes: deductions: loss of fair market value.
The Personal Income Tax Law and the Corporation Tax Law authorize various deductions in computing income that is subject to tax under those laws.
This bill would allow as a deduction, under both of those laws for taxable years beginning on or after January 1, 2015, the amount of any loss of the fair market value of any tangible personal property located in California that is attributable to a rule, regulation, or statute that took effect in the taxable year in which the deduction is claimed, as provided.
This bill would take effect immediately as a tax levy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 17239 is added to the Revenue and Taxation Code, to read:

17239.
 (a) For taxable years beginning on or after January 1, 2014, there shall be allowed as a deduction the amount of any loss of the fair market value, as determined by the taxpayer, of any tangible personal property located in California attributable to a rule or regulation promulgated by a California state agency or a statute enacted by the California Legislature that took effect in the taxable year in which the deduction is claimed.
(b) For purposes of this section:
(1) “Fair market value” means “full cash value” or “fair market value” as defined in Section 110.
(2) “Tangible personal property” means privately owned property that has physical substance and can be touched.
(c) This section shall apply only to a rule or regulation promulgated by a California state agency or a statute enacted by the California Legislature promulgated or enacted on or after the effective date of the act adding this section.
(d) The deduction allowed by this section is in lieu of any other deduction which the taxpayer may otherwise claim pursuant to this part with respect to the depreciation of tangible personal property.

SEC. 2.

 Section 24356.9 is added to the Revenue and Taxation Code, to read:

24356.9.
 (a) For taxable years beginning on or after January 1, 2014, there shall be allowed as a deduction the amount of any loss of the fair market value, as determined by the taxpayer, of any tangible personal property located in California attributable to a rule or regulation promulgated by a California state agency or a statute enacted by the California Legislature that took effect in the taxable year in which the deduction is claimed.
(b) For purposes of this section:
(1) “Fair market value” means “full cash value” or “fair market value” as defined in Section 110.
(2) “Tangible personal property” means privately owned property that has physical substance and can be touched.
(c) This section shall apply only to a rule or regulation promulgated by a California state agency or a statute enacted by the California Legislature promulgated or enacted on or after the effective date of the act adding this section.
(d) The deduction allowed by this section is in lieu of any other deduction which the taxpayer may otherwise claim pursuant to this part with respect to the depreciation of tangible personal property.

SEC. 3.

 This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.