| Last Version Text |
<?xml version="1.0" ?>
<ns0:MeasureDoc xmlns:html="http://www.w3.org/1999/xhtml" xmlns:ns0="http://lc.ca.gov/legalservices/schemas/caml.1#" xmlns:ns3="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.0" xsi:schemaLocation="http://lc.ca.gov/legalservices/schemas/caml.1# xca.1.xsd">
<ns0:Description>
<ns0:Id>20250AB__042998AMD</ns0:Id>
<ns0:VersionNum>98</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-05</ns0:ActionDate>
</ns0:Action>
<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-05-08</ns0:ActionDate>
</ns0:Action>
</ns0:History>
<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>429</ns0:MeasureNum>
<ns0:MeasureState>AMD</ns0:MeasureState>
</ns0:LegislativeInfo>
<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Hadwick</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_ORIGINATING">(Coauthor: Assembly Member Lackey)</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_OPPOSITE">(Coauthor: Senator Dahle)</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Hadwick</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Lackey</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Dahle</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title>An act to add and repeal Sections 17139.8 and 24309.9 of the Revenue and Taxation Code, relating to taxation, and declaring the urgency thereof, to take effect immediately.</ns0:Title>
<ns0:RelatingClause>taxation, and declaring the urgency thereof, to take effect immediately</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Personal Income Tax Law: Corporation Tax Law: exclusions: wildfires.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>The Personal Income Tax 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.</html:p>
<html:p>This bill, for taxable years beginning on or after January 1, 2022, and before January 1, 2027, would provide an exclusion from gross income for amounts received by a qualified taxpayer, as defined, in settlement for costs and losses associated with the 2021 Dixie Fire in the Counties of Butte, Plumas, Lassen, Shasta, and Tehama, or the 2022 Mill Fire in the County of Siskiyou,
as provided.</html:p>
<html:p>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.</html:p>
<html:p>This bill would include additional information required for any bill authorizing a new tax expenditure.</html:p>
<html:p>The bill would make legislative findings and declarations related to a gift of public funds. </html:p>
<html:p>This bill would declare that it is to take effect immediately as an urgency statute.</html:p>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>TWO_THIRDS</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
</ns0:DigestKey>
<ns0:MeasureIndicators>
<ns0:ImmediateEffect>YES</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>YES</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
</ns0:ImmediateEffectFlags>
</ns0:MeasureIndicators>
</ns0:Description>
<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_FA4C75E7-1FFC-4880-B1CC-92771120134F">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:href="urn:caml:codes:RTC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'17139.8'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 17139.8 is added to the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_C18D1767-EE77-42D6-A5E6-893E7EDFBCD1">
<ns0:Num>17139.8.</ns0:Num>
<ns0:LawSectionVersion id="id_DC971435-4F79-4C0A-A560-44D5D7B3A385">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
For taxable years beginning on or after January 1, 2022, and before January 1, 2027, gross income does not include any qualified amount received by a qualified taxpayer.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this section:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Qualified amount” means any amount received in settlement by a qualified taxpayer from a settlement entity in connection with any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The 2021 Dixie Fire.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The 2022 Mill Fire.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Qualified taxpayer” means any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
In relation to the 2021 Dixie Fire, the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Any taxpayer that owned real property located in the County of Butte, Plumas, Lassen, Shasta, or Tehama during the 2021 Dixie Fire that paid or incurred expenses and received amounts from a settlement arising out of or pursuant to the 2021 Dixie Fire.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Any taxpayer that resided within the County of Butte, Plumas, Lassen, Shasta, or Tehama during the 2021 Dixie Fire that paid or incurred expenses and received amounts
from a settlement arising out of or pursuant to the 2021 Dixie Fire.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Any taxpayer that had a place of business within the County of Butte, Plumas, Lassen, Shasta, or Tehama during the 2021 Dixie Fire that paid or incurred expenses and received amounts from a settlement arising out of or pursuant to the 2021 Dixie Fire.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
In relation to the 2022 Mill Fire, the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Any taxpayer that owned real property located in the County of Siskiyou during the 2022 Mill Fire that paid or incurred expenses and received amounts from a settlement arising out of or pursuant to the 2022 Mill Fire.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Any taxpayer that resided within the County of Siskiyou during the 2022 Mill Fire that paid or incurred expenses and received amounts from a settlement arising out of or pursuant to the 2022 Mill Fire.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Any taxpayer that had a place of business within the County of Siskiyou during the 2022 Mill Fire that paid or incurred expenses and received amounts from a settlement arising out of or pursuant to the 2022 Mill Fire.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Settlement entity” means the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
In relation to the 2021 Dixie Fire, Pacific Gas and Electric Company or its subsidiary making the settlement payment to a qualified taxpayer.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
In relation to the 2022 Mill Fire, Roseburg Forest Products or its subsidiary or agent making the settlement payment to a qualified taxpayer.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The settlement entity shall provide, upon request by the Franchise Tax Board, documentation of the settlement payments in the form and manner requested by the Franchise Tax Board.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
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:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The specific goal, purpose, and objective of the tax exclusion is to provide essential relief to individuals who have suffered injury, loss, inconvenience, and expenses resulting from the devastating 2021 Dixie Fire or 2022 Mill Fire.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
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 qualified taxpayers that excluded qualified amounts from gross income, and the aggregate amount of settlement payments arising out of the 2021 Dixie
Fire or 2022 Mill Fire.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
On December 1, 2027, the Franchise Tax Board shall deliver to the Legislature a written report that includes both of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
To the extent feasible, the number of qualified taxpayers that excluded qualified amounts from gross income, as a result of the exclusion.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The aggregate amount of those settlement payments arising out of the 2021 Dixie Fire or 2022 Mill
Fire.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The report required by this paragraph shall be delivered to the Legislature in compliance with Section 9795 of the Government Code.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The disclosure provisions of this subdivision shall be treated as an exception to Section 19542.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
This section shall remain in effect only until December 1, 2027, and as of that date is repealed.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_91A2EC5D-61E2-4339-8775-7D61AA6D88E3">
<ns0:Num>SEC. 2.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:href="urn:caml:codes:RTC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'24309.9'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 24309.9 is added to the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_24329466-6A53-4725-8F93-F7CD17C51243">
<ns0:Num>24309.9.</ns0:Num>
<ns0:LawSectionVersion id="id_C5255F49-B9AD-4D47-BBAB-90ADFAF45575">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
For taxable years beginning on or after January 1, 2022, and before January 1, 2027, gross income does not include any qualified amount received by a qualified taxpayer.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this section:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Qualified amount” means any amount received in settlement by a qualified taxpayer from a settlement entity in connection with any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The 2021 Dixie Fire.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The 2022 Mill Fire.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Qualified taxpayer” means any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
In relation to the 2021 Dixie Fire, the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Any taxpayer that owned real property located in the County of Butte, Plumas, Lassen, Shasta, or Tehama during the 2021 Dixie Fire that paid or incurred expenses and
received amounts from a settlement arising out of or pursuant to the 2021 Dixie Fire.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Any taxpayer that had a place of business within the County of Butte, Plumas, Lassen, Shasta, or Tehama during the 2021 Dixie Fire that paid or incurred expenses and received amounts from a settlement arising out of or pursuant to the 2021 Dixie Fire.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
In relation to the 2022 Mill Fire, the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Any taxpayer that owned real property located in the County of Siskiyou during the 2022 Mill Fire that paid or incurred expenses and received amounts from a settlement arising out of or pursuant to the 2022 Mill Fire.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Any taxpayer that had a place of business within the County of Siskiyou during the 2022 Mill Fire that paid or incurred expenses and received amounts from a settlement arising out of or pursuant to the 2022 Mill Fire.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Settlement entity” means the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
In relation to the 2021 Dixie Fire, Pacific Gas and Electric Company or its subsidiary making the settlement payment to a qualified taxpayer.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
In relation to the 2022 Mill Fire, Roseburg Forest Products or its subsidiary or agent making the settlement payment to a qualified taxpayer.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The settlement entity shall provide, upon request by the Franchise Tax
Board, documentation of the settlement payments in the form and manner requested by the Franchise Tax Board.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
This section shall remain in effect only until December 1, 2027, and as of that date is repealed.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_C33C1AB4-7561-417E-A0E3-E41EBF54AFB6">
<ns0:Num>SEC. 3.</ns0:Num>
<ns0:Content>
<html:p>The Legislature finds and declares that Sections 17139.4 and 24309.8 of the Revenue and Taxation Code, as added by this act, are necessary for the public purpose of preventing undue hardship to taxpayers who reside, or used to reside, in a part of California devastated by fire, and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.</html:p>
</ns0:Content>
</ns0:BillSection>
<ns0:BillSection id="id_F61B8B7A-36D8-48BB-9120-67EC49A98F18">
<ns0:Num>SEC. 4.</ns0:Num>
<ns0:Content>
<html:p>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:</html:p>
<html:p>In order to provide essential relief to those persons who have suffered injury, loss, inconvenience, and expenses resulting from the devastating 2021 Dixie Fire or 2022 Mill Fire,
as soon as possible, it is necessary that this act take effect immediately. </html:p>
</ns0:Content>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>
|