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<ns0:Id>20250SB__134399INT</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senators Dahle and Allen</ns0:AuthorText>
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<ns0:House>SENATE</ns0:House>
<ns0:Name>Dahle</ns0:Name>
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<ns0:Name>Allen</ns0:Name>
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<ns0:Title> An act to add and repeal Section 17052.13 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.</ns0:Title>
<ns0:RelatingClause>taxation, to take effect immediately, tax levy</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Income tax credit: sales and use tax paid: natural disasters.</ns0:Subject>
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<html:p>Existing state sales and use tax laws impose a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state of, or on the storage, use, or other consumption in this state of, tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The California Emergency Services Act authorizes the Governor to proclaim a state of emergency in an area affected, or likely to be affected, thereby if certain criteria are met, including there are conditions of disaster or of extreme peril to the safety of persons and property within the state caused by conditions such as air pollution, fire, flood, storm, epidemic, riot, drought, cyberterrorism, sudden and severe energy shortage, electromagnetic pulse attack, or plant or animal infestation or disease.</html:p>
<html:p>The
Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.</html:p>
<html:p>This bill would allow, for a taxable year beginning on or after January 1, 2027, and before January 1, 2032, a credit against those taxes to a taxpayer in an amount equal to the amount of tax reimbursement paid by the taxpayer, or by a nonprofit housing developer working on behalf of the taxpayer, during a covered period, as defined, for sales tax on gross receipts from the purchase of certain qualified tangible personal property related to rebuilding the taxpayer’s primary residence from damage caused by a natural disaster, as defined. The bill would also allow a similar credit in an amount equal to the amount of use tax paid by the taxpayer during the covered period.</html:p>
<html:p>This bill would take effect immediately as a tax levy.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 17052.13 is added to the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
, to read:
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<ns0:Num>17052.13.</ns0:Num>
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(a)
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(1)
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For each taxable year beginning on or after January 1, 2027, and before January 1, 2032, a taxpayer shall be allowed a credit against the “net tax,” as defined in Section 17039, in an amount equal to the amount of tax reimbursement paid by the taxpayer, or by a nonprofit housing developer working on behalf of the taxpayer, during a covered period for sales tax on gross receipts from the purchase of qualified tangible personal property.
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(2)
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For each taxable year beginning on or after January 1, 2027, and before January 1, 2032, a taxpayer shall be allowed a credit against the “net tax,” as defined in Section 17039, in an amount equal to the amount of use tax paid by the taxpayer, or by a nonprofit housing developer
working on behalf of the taxpayer, during a covered period for storage, use, or other consumption of qualified tangible personal property.
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(b)
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As used in this section:
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<html:p>
(1)
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“Covered period” means a period of time that began on the date the natural disaster that damaged the claimant’s primary residence occurred and the date that is three years from that date.
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(2)
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“Major appliance” means a water heater, dishwasher, washer, dryer, refrigerator, freezer, stove, range, oven, cooktop, microwave, vacuum, or fan that is used in the taxpayer’s primary residence to replace an appliance that was damaged or destroyed in a natural disaster, the sales price per item of which is not more than three thousand five hundred dollars ($3,500).
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(3)
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“Natural disaster” means a
major misfortune or calamity that is the subject of a state of emergency proclaimed by the Governor pursuant to Section 8625 of the Government Code.
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(4)
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“Qualified tangible personal property” means any of the following:
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(A)
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A major appliance.
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(B)
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Residential furniture.
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(C)
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Residential building supplies.
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(5)
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“Residential building supplies” means any of the following items if used in the taxpayer’s primary residence and reasonably determined by the Franchise Tax Board to be for the purpose of restoration, repair, replacement, or rebuilding due to a natural disaster, the sales price per item of which is not more than five hundred dollars ($500):
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(A)
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Cleaning and disinfecting materials, as determined by the Franchise Tax Board.
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(B)
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Construction tools and hardware, as determined by the Franchise Tax Board.
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<html:p>
(C)
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Roofing shingles, roofing paper, gutters, downspouts, vents, doors, windows, sheetrock, drywall, insulation, paint and paint materials, flooring, and other necessary building materials, as determined by the Franchise Tax Board.
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(6)
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“Residential furniture” means furniture commonly used in a residential dwelling, as determined by the Franchise Tax Board, that is used in the taxpayer’s primary residence to replace furniture that was damaged or destroyed in a natural disaster, the sales price per item of which is not more than three thousand five hundred dollars ($3,500).
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(7)
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“Sales tax” means a sales tax levied pursuant to any of the following:
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<html:p>
(A)
<html:span class="EnSpace"/>
Part 1 (commencing with Section 6001).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Part 1.5 (commencing with Section 7200).
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Part 1.6 (commencing with Section 7251).
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Part 1.7 (commencing with 7280).
</html:p>
<html:p>
(8)
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“Use tax” means a use tax levied pursuant to any of the following:
</html:p>
<html:p>
(A)
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Part 1 (commencing with Section 6001).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Part 1.5 (commencing with Section 7200).
</html:p>
<html:p>
(C)
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Part 1.6 (commencing with Section 7251).
</html:p>
<html:p>
(D)
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Part 1.7 (commencing with 7280).
</html:p>
<html:p>
(c)
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(1)
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If a credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and succeeding years, if necessary, until the credit is exhausted.
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(2)
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The total amount of the credit allowed under this section with respect to any particular natural disaster shall not exceed ten thousand dollars ($10,000).
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(d)
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The Franchise Tax Board may adopt regulations necessary or appropriate to carry out the purposes of this section.
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(e)
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For the purpose of complying with Section 41, the Legislature finds and declares the following with respect to the tax credits allowed by this section:
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<html:p>
(1)
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The specific goal that the credits will achieve is to help Californians
rebuild from natural disasters.
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(2)
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(A)
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The Legislative Analyst’s Office, on or before January 1, 2029, shall review the effectiveness of the credits allowed under this section and post the review on the office’s internet website.
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(B)
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The review required by this paragraph shall include, but not be limited to, an analysis of the demand for the credits and the economic impact of the credits.
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(f)
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This section shall remain in effect only until December 1, 2031, and as of that date is repealed.
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<ns0:Num>SEC. 2.</ns0:Num>
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<html:p>This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.</html:p>
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