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AB-27 Personal Income Tax Law: Corporation Tax Law: Chiquita Canyon elevated temperature landfill event: exclusions.(2025-2026)

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Date Published: 12/02/2024 09:00 PM
AB27:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill
No. 27

Introduced by Assembly Member Schiavo
(Coauthors: Assembly Members Bennett, Calderon, Hart, and Jackson)
(Coauthors: Senators Allen and Stern)

December 02, 2024

An act to add Sections 17157.5 and 24309.9 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 27, as introduced, Schiavo. Personal Income Tax Law: Corporation Tax Law: Chiquita Canyon elevated temperature landfill event: exclusions.
The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally define “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income.
This bill, for taxable years beginning on or after January 1, 2024, would provide an exclusion from gross income for amounts received, on or after March 1, 2024, as compensation for specified costs and losses related to the Chiquita Canyon elevated temperature landfill event in the County of Los Angeles, as provided.
Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would include additional information required for any bill authorizing a new tax expenditure.
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 17157.5 is added to the Revenue and Taxation Code, to read:

17157.5.
 (a) For taxable years beginning on or after January 1, 2024, gross income does not include any Chiquita Canyon elevated temperature event payment amount received by a taxpayer.
(b) For purposes of this section:
(1) “Chiquita Canyon elevated temperature landfill event” means the elevated temperature landfill event, beginning on May 1, 2022, that occurred beneath the Chiquita Canyon Landfill in the County of Los Angeles, California.
(2) “Chiquita Canyon elevated temperature landfill event payment” means any amount received by a taxpayer on or after March 1, 2024, as compensation for loss, damages, expenses, relocation, suffering, loss in real property value, closing costs with respect to real property, including realtor commissions, or inconvenience, including access to real property, resulting from the Chiquita Canyon elevated temperature landfill event, if the amount was provided by either of the following:
(A) A federal, state, or local governmental agency.
(B) Waste Connections, Inc., any subsidiary, insurer, or agent of Waste Connections, Inc., or any person related to Waste Connections, Inc.
(c) The taxpayer shall provide, upon request by the Franchise Tax Board, documentation of the Chiquita Canyon elevated temperature event payment amount in the form and manner requested by the Franchise Tax Board.
(d) For the purpose of complying with Section 41 in regards to the exclusion provided by this section and Section 24309.9, the Legislature finds and declares as follows:
(1) The specific goal, purpose, and objective of the tax exclusion is to provide essential relief to individuals who have suffered loss, damages, expenses, relocation, suffering, and inconvenience resulting from the Chiquita Canyon elevated temperature landfill event.
(2) The performance indicators for the Legislature to use in determining if the exclusion achieves the stated goal, purpose, and objective shall be the number of taxpayers that excluded Chiquita Canyon elevated temperature event payment amounts from gross income, and the aggregate amount of related payments arising out of the Chiquita Canyon elevated temperature landfill event.

SEC. 2.

 Section 24309.9 is added to the Revenue and Taxation Code, to read:

24309.9.
 (a) For taxable years beginning on or after January 1, 2024, gross income does not include any Chiquita Canyon elevated temperature landfill event payment amount received by a taxpayer.
(b) For purposes of this section:
(1) “Chiquita Canyon elevated temperature landfill event” means the elevated temperature landfill event, beginning on May 1, 2022, that occurred beneath the Chiquita Canyon Landfill in the County of Los Angeles, California.
(2) “Chiquita Canyon elevated temperature landfill event payment” means any amount received by a taxpayer on or after March 1, 2024, as compensation for loss, damages, expenses, relocation, suffering, loss in real property value, closing costs with respect to real property, including realtor commissions, or inconvenience, including access to real property, resulting from the Chiquita Canyon elevated temperature landfill event, if the amount was provided by either of the following:
(A) A federal, state, or local governmental agency.
(B) Waste Connections, Inc., any subsidiary, insurer, or agent of Waste Connections, Inc., or any person related to Waste Connections, Inc.
(c) The taxpayer shall provide, upon request by the Franchise Tax Board, documentation of the Chiquita Canyon elevated temperature landfill event payment amount in the form and manner requested by the Franchise Tax Board.

SEC. 3.

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