Today's Law As Amended


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AB-1 Taxation: disaster relief: storms and floods.(1997-1998)



As Amends the Law Today


SECTION 1.

 Section 195.77 is added to the Revenue and Taxation Code, to read:

195.77.
 In the 1996–97 fiscal year, or as soon as possible thereafter, the county auditor of an eligible county, proclaimed by the Governor to be in a state of disaster as a result of storm, flooding, or any other related casualty that occurred in that county during December 1996 or January 1997, shall certify to the Director of Finance an estimate of the total amount of the reduction in property tax revenues on both the regular secured roll and the supplemental roll for the 1996–97 fiscal year resulting from the reassessment by the county assessor pursuant to paragraph (1) of subdivision (a) of Section 170 of those properties that are eligible properties as a result of that disaster, except that the amount certified shall not include any estimated property tax revenue reductions to school districts (other than basic state aid school districts) and county offices of education. For purposes of this section, “basic state aid school district” means any school district that does not receive a state apportionment pursuant to subdivision (h) of Section 42238 of the Education Code, but receives from the state only a basic apportionment pursuant to Section 6 of Article IX of the California Constitution.

SEC. 2.

 Section 195.78 is added to the Revenue and Taxation Code, to read:

195.78.
 After the county auditor of an eligible county, as described in Section 195.77, has made the applicable certification to the Director of Finance pursuant to that same section, the director shall, within 30 days after verification of the county auditor’s estimate, certify this amount to the Controller for allocation to the county. Upon receipt of certification from the Director of Finance, the Controller shall make the appropriate allocation to the county within 10 working days thereafter.

SEC. 3.

 Section 195.79 is added to the Revenue and Taxation Code, to read:

195.79.
 On or before July 1, 1998, each eligible county, as described in Section 195.77, shall compute and remit to the Controller for deposit in the General Fund an amount equal to the amount allocated to it by the Controller pursuant to Section 195.78, less the actual amount of its property tax revenue lost on the regular secured and supplemental rolls with respect to those eligible properties described in Section 195.77 as a result of the reassessment of those properties pursuant to paragraph (1) of subdivision (a) of Section 170, excluding any property tax revenue lost by school districts (other than basic state aid school districts) and county offices of education. If the actual amount of property tax revenue lost by an eligible county in the immediately preceding fiscal year, as described and limited in the preceding sentence, exceeds the amount allocated by the Controller to that county pursuant to Section 195.78, the Controller shall allocate the amount of that excess to that eligible county. For purposes of this section, “basic state aid school district” means any school district that does not receive a state apportionment pursuant to subdivision (h) of Section 42238 of the Education Code, but receives from the state only a basic apportionment pursuant to Section 6 of Article IX of the California Constitution.

SEC. 4.

 Section 17207 of the Revenue and Taxation Code is amended to read:

17207.
 (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)   Forest fire or any other related casualty occurring in 1985 in California.  
(2)   Storm, flooding, or any other related casualty occurring in 1986 in California.  
(3)   Any loss sustained during 1987 as a result of a forest fire or any other related casualty.  
(4)   Earthquake, aftershock, or any other related casualty occurring in 1987 in California.  
(5)   Earthquake, aftershock, or any other related casualty occurring in 1989 in California.  
(6)   Any loss sustained during 1990 as a result of fire or any other related casualty in California.  
(7)   Any loss sustained as a result of the Oakland/Berkeley Fire of 1991, or any other related casualty.  
(8)   Any loss sustained as a result of storm, flooding, or any other related casualty occurring in February 1992 in California.  
(9)   Earthquake, aftershock, or any other related casualty occurring in April 1992 in the County of Humboldt.  
(10)   Riots, arson, or any other related casualty occurring in April or May 1992 in California.  
(11)   Any loss sustained as a result of the earthquakes that occurred in the County of San Bernardino in June and July of 1992, or any other related casualty.  
(12)   Any loss sustained as a result of the Fountain Fire that occurred in the County of Shasta, or as a result of either of the fires in the Counties of Calaveras and Trinity that occurred in August 1992, or any other related casualty.  
(13)   Any loss sustained as a result of storm, flooding, or any other related casualty that occurred in the Counties of Alpine, Contra Costa, Fresno, Humboldt, Imperial, Lassen, Los Angeles, Madera, Mendocino, Modoc, Monterey, Napa, Orange, Plumas, Riverside, San Bernardino, San Diego, Santa Barbara, Sierra, Siskiyou, Sonoma, Tehama, Trinity, and Tulare, and the City of Fillmore in January 1993.  
(14)   Any loss sustained as a result of a fire that occurred in the Counties of Los Angeles, Orange, Riverside, San Bernardino, San Diego, and Ventura, during October or November of 1993, or any other related casualty.  
(15)   Any loss sustained as a result of the earthquake, aftershocks, or any other related casualty that occurred in the Counties of Los Angeles, Orange, and Ventura on or after January 17, 1994.  
(16)   Any loss sustained as a result of a fire that occurred in the County of San Luis Obispo during August of 1994, or any other related casualty.  
(17)   Any loss sustained as a result of the storms or flooding occurring in 1995, or any other related casualty, sustained in any county of this state subject to a disaster declaration with respect to the storms and flooding.  
(18)   Any loss sustained as a result of the storms or flooding occurring in December 1996 or January 1997, or any related casualty, sustained in any county of this state subject to a disaster declaration with respect to the storms or flooding.  
(19) Any loss sustained as a result of the storms or flooding occurring in February 1998, or any related casualty, sustained in any county of this state subject to a disaster declaration with respect to the storms or flooding.
(20) Any loss sustained as a result of a freeze occurring in the winter of 1998–99, or any related casualty, sustained in any county of this state subject to a disaster declaration with respect to the freeze.
(21) Any loss sustained as a result of an earthquake occurring in September 2000, that was included in the Governor’s proclamation of a state of emergency for the County of Napa.
(22) Any loss sustained as a result of the Middle River levee break in San Joaquin County occurring in June 2004.
(23) Any losses sustained as a result of the fires that occurred in the Counties of Los Angeles, Riverside, San Bernardino, San Diego, and Ventura in October and November 2003, or as a result of floods, mudflows, and debris flows, directly related to fires.
(24) Any losses sustained in the Counties of Santa Barbara and San Luis Obispo as a result of the San Simeon earthquake, aftershocks, and any other related casualties.
(25) Any losses sustained as a result of the wildfires that occurred in Shasta County, commencing August 11, 2004, and any other related casualty.
(26) Any loss sustained in the Counties of Kern, Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura as a result of the severe rainstorms, related flooding and slides, and any other related casualties, that occurred in December 2004, January 2005, February 2005, March 2005, or June 2005.
(27) Any loss sustained in the Counties of Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado, Fresno, Humboldt, Kings, Lake, Lassen, Madera, Marin, Mariposa, Mendocino, Merced, Monterey, Napa, Nevada, Placer, Plumas, Sacramento, San Joaquin, San Luis Obispo, San Mateo, Santa Cruz, Shasta, Sierra, Siskiyou, Solano, Sonoma, Stanislaus, Sutter, Trinity, Tulare, Tuolumne, Yolo, and Yuba as a result of the severe rainstorms, related flooding and slides, and any other related casualties, that occurred in December 2005, January 2006, March 2006, or April 2006.
(28) Any loss sustained in the County of San Bernardino as a result of the wildfires that occurred in July 2006.
(29) Any loss sustained in the Counties of Riverside and Ventura as a result of wildfires that occurred during the 2006 calendar year.
(30) Any loss sustained in the Counties of El Dorado, Fresno, Imperial, Kern, Kings, Madera, Merced, Monterey, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara, Santa Clara, Stanislaus, Tulare, Ventura, and Yuba that were the subject of the Governor’s proclamations of a state of emergency for the severe freezing conditions that occurred in January 2007.
(31) Any loss sustained in the County of El Dorado as a result of wildfires that occurred in June 2007.
(32) Any loss sustained in the Counties of Santa Barbara and Ventura as a result of the Zaca Fire that occurred during the 2007 calendar year.
(33) Any loss sustained in the County of Inyo as a result of wildfires that commenced in July 2007.
(34) Any loss sustained in the Counties of Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura as a result of wildfires that occurred during the 2007 calendar year that were the subject of the Governor’s disaster proclamations of September 15, 2007, and October 21, 2007.
(35) Any loss sustained in the County of Riverside as a result of extremely strong and damaging winds that occurred in October 2007.
(36) Any loss sustained in the Counties of Butte, Kern, Mariposa, Mendocino, Monterey, Plumas, Santa Clara, Santa Cruz, Shasta, and Trinity as a result of wildfires that occurred in May or June 2008 that were the subject of the Governor’s proclamations of a state of emergency.
(37) Any loss sustained in the County of Santa Barbara as a result of wildfires that occurred in July 2008.
(38) Any loss sustained in the County of Inyo as a result of the severe rainstorms, related flooding and landslides, and any other related casualties, that occurred in July 2008.
(39) Any loss sustained in the County of Humboldt as a result of wildfires that commenced in May 2008.
(40) Any loss sustained in the County of Santa Barbara as a result of wildfires that commenced in November 2008.
(41) Any loss sustained in the Counties of Los Angeles and Ventura as a result of wildfires that commenced in October 2008 or November 2008 that were the subject of the Governor’s proclamations of a state of emergency.
(42) Any loss sustained in the Counties of Orange, Riverside, and San Bernardino as a result of wildfires that commenced in November 2008.
(43) Any loss sustained in the County of Santa Barbara as a result of wildfires that commenced in May 2009.
(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  50 percent 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  For purposes of this section, “disaster losses” are losses that either qualified for treatment under  Section 165(i) of the Internal Revenue Code shall be applicable to any of the losses listed in subdivision (a)  or were  sustained in any county or city in this state which was is  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 paragraphs (15) to (43), inclusive,  (15), (16), (17), and (18)  of 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. 5.

 Section 24347.5 of the Revenue and Taxation Code is amended to read:

24347.5.
 (a)   An excess disaster loss, as defined in subdivision (c), shall be carried to other taxable income  years as provided in subdivision (b), with respect to losses resulting from any of the following disasters:  
(1)   Forest fire or any other related casualty occurring in 1985 in California.  
(2)   Storm, flooding, or any other related casualty occurring in 1986 in California.  
(3)   Any loss sustained during 1987 as a result of a forest fire or any other related casualty.  
(4)   Earthquake, aftershock, or any other related casualty occurring in October 1987 in California.  
(5)   Earthquake, aftershock, or any other related casualty occurring in October 1989 in California.  
(6)   Any loss sustained during 1990 as a result of fire or any other related casualty in California.  
(7)   Any loss sustained as a result of the Oakland/Berkeley Fire of 1991, or any other related casualty.  
(8)   Any loss sustained as a result of storm, flooding, or any other related casualty occurring in February 1992 in California.  
(9)   Earthquake, aftershock, or any other related casualty occurring in April 1992 in the County of Humboldt.  
(10)   Riots, arson, or any other related casualty occurring in April or May 1992 in California.  
(11)   Any loss sustained as a result of the earthquakes or any other related casualty that occurred in the County of San Bernardino in June and July of 1992.  
(12)   Any loss sustained as a result of the Fountain Fire that occurred in the County of Shasta, or as a result of either of the fires in the Counties of Calaveras and Trinity that occurred in August 1992, or any other related casualty.  
(13)   Any loss sustained as a result of storm, flooding, or any other related casualty that occurred in the Counties of Alpine, Contra Costa, Fresno, Humboldt, Imperial, Lassen, Los Angeles, Madera, Mendocino, Modoc, Monterey, Napa, Orange, Plumas, Riverside, San Bernardino, San Diego, Santa Barbara, Sierra, Siskiyou, Sonoma, Tehama, Trinity, and Tulare, and the City of Fillmore in January 1993.  
(14)   Any loss sustained as a result of a fire that occurred in the Counties of Los Angeles, Orange, Riverside, San Bernardino, San Diego, and Ventura, during October or November of 1993, or any other related casualty.  
(15)   Any loss sustained as a result of the earthquake, aftershocks, or any other related casualty that occurred in the Counties of Los Angeles, Orange, and Ventura on or after January 17, 1994.  
(16)   Any loss sustained as a result of a fire that occurred in the County of San Luis Obispo during August of 1994, or any other related casualty.  
(17)   Any loss sustained as a result of the storms or flooding occurring in 1995, or any other related casualty, sustained in any county of this state subject to a disaster declaration with respect to the storms and flooding.  
(18)   Any loss sustained as a result of the storms or flooding occurring in December 1996 or January 1997, or any related casualty, sustained in any county of this state subject to a disaster declaration with respect to the storms or flooding.  
(19) Any loss sustained as a result of the storms or flooding occurring in February 1998, or any related casualty, sustained in any county of this state subject to a disaster declaration with respect to the storms or flooding.
(20) Any loss sustained as a result of a freeze occurring in the winter of 1998–99, or any related casualty, sustained in any county of this state subject to a disaster declaration with respect to the freeze.
(21) Any loss sustained as a result of an earthquake occurring in September 2000, that was included in the Governor’s proclamation of a state of emergency for the County of Napa.
(22) Any loss sustained as a result of the Middle River levee break in San Joaquin County occurring in June 2004.
(23) Any losses sustained as a result of the fires that occurred in the Counties of Los Angeles, Riverside, San Bernardino, San Diego, and Ventura in October and November 2003, or as a result of floods, mudflows, and debris flows, directly related to fires.
(24) Any losses sustained in the Counties of Santa Barbara and San Luis Obispo as a result of the San Simeon earthquake, aftershocks, and any other related casualties.
(25) Any losses sustained as a result of the wildfires that occurred in Shasta County, commencing August 11, 2004, and any other related casualty.
(26) Any loss sustained in the Counties of Kern, Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura as a result of the severe rainstorms, related flooding and slides, and any other related casualties, that occurred in December 2004, January 2005, February 2005, March 2005, or June 2005.
(27) Any loss sustained in the Counties of Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado, Fresno, Humboldt, Kings, Lake, Lassen, Madera, Marin, Mariposa, Mendocino, Merced, Monterey, Napa, Nevada, Placer, Plumas, Sacramento, San Joaquin, San Luis Obispo, San Mateo, Santa Cruz, Shasta, Sierra, Siskiyou, Solano, Sonoma, Stanislaus, Sutter, Trinity, Tulare, Tuolumne, Yolo, and Yuba as a result of the severe rainstorms, related flooding and slides, and any other related casualties, that occurred in December 2005, January 2006, March 2006, or April 2006.
(28) Any loss sustained in the County of San Bernardino as a result of the wildfires that occurred in July 2006.
(29) Any loss sustained in the Counties of Riverside and Ventura as a result of wildfires that occurred during the 2006 calendar year.
(30) Any loss sustained in the Counties of El Dorado, Fresno, Imperial, Kern, Kings, Madera, Merced, Monterey, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara, Santa Clara, Stanislaus, Tulare, Ventura, and Yuba that were the subject of the Governor’s proclamations of a state of emergency for the severe freezing conditions that occurred in January 2007.
(31) Any loss sustained in the County of El Dorado as a result of wildfires that occurred in June 2007.
(32) Any loss sustained in the Counties of Santa Barbara and Ventura as a result of the Zaca Fire that occurred during the 2007 calendar year.
(33) Any loss sustained in the County of Inyo as a result of wildfires that commenced in July 2007.
(34) Any loss sustained in the Counties of Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura as a result of wildfires that occurred during the 2007 calendar year that were the subject of the Governor’s disaster proclamations of September 15, 2007, and October 21, 2007.
(35) Any loss sustained in the County of Riverside as a result of extremely strong and damaging winds that occurred in October 2007.
(36) Any loss sustained in the Counties of Butte, Kern, Mariposa, Mendocino, Monterey, Plumas, Santa Clara, Santa Cruz, Shasta, and Trinity as a result of wildfires that occurred in May or June 2008 that were the subject of the Governor’s proclamations of a state of emergency.
(37) Any loss sustained in the County of Santa Barbara as a result of wildfires that occurred in July 2008.
(38) Any loss sustained in the County of Inyo as a result of the severe rainstorms, related flooding and landslides, and any other related casualties, that occurred in July 2008.
(39) Any loss sustained in the County of Humboldt as a result of wildfires that commenced in May 2008.
(40) Any loss sustained in the County of Santa Barbara as a result of wildfires that commenced in November 2008.
(41) Any loss sustained in the Counties of Los Angeles and Ventura as a result of wildfires that commenced in October 2008 or November 2008 that were the subject of the Governor’s proclamations of a state of emergency.
(42) Any loss sustained in the Counties of Orange, Riverside, and San Bernardino as a result of wildfires that commenced in November 2008.
(43) Any loss sustained in the County of Santa Barbara as a result of wildfires that commenced in May 2009.
(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 income  years following the taxable income  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  50 percent of  that excess disaster loss shall be carried forward to each of the next 10 taxable income  years.  
(2)   The entire amount of any excess disaster loss as defined in subdivision (c) shall be carried to the earliest of the taxable income  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 income  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 income  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  For purposes of this section, “disaster losses” are losses that either qualified for treatment under  Section 165(i) of the Internal Revenue Code shall be applicable to any of the losses listed in subdivision (a)  Code, or were  sustained in any county or city in this state which was is  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 income  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 paragraphs (15) to (43), inclusive,  (15), (16), (17), and (18)  of 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 income  year in which the disaster occurred.  
SEC. 6.
 The Legislature finds and declares that this act fulfills a statewide public purpose because of both of the following:
(a)  The Governor of California has officially proclaimed that the flooding that occurred in California during December 1996 and January 1997 was a disaster, thus qualifying affected persons for various forms of governmental assistance and relief.
(b)  This act is consistent with and supplements the proclaimed disaster relief by providing necessary fiscal assistance and tax relief to affected jurisdictions and persons to allow them to maintain essential basic services and repair damage to, and restore, their homes and businesses.
SEC. 7.
 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 Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to timely provide essential relief to those persons and jurisdictions who have suffered damage or loss as a result of the floods that occurred in California during December 1996 and January 1997, it is necessary that this act take effect immediately.