Income tax credit: sales and use tax paid: natural disasters.

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Income tax credit: sales and use tax paid: natural disasters.

SB 1343, as amended, Dahle.

What This Bill Does

• SB 1343, as amended, Dahle.
• Income tax credit: sales and use tax paid: natural disasters.
• 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.

Limits and Unknowns

• This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Official Summary Text

SB 1343, as amended, Dahle.
Income tax credit: sales and use tax paid: natural disasters.
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.
The
Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill would allow, for
a
taxable
year
years
beginning on or after January 1, 2027, and before January 1, 2032, a credit against those taxes to a
taxpayer
qualified taxpayer, as defined,
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.
qualified tax payments made during the taxable year, subject to certain limitations. The bill would define “qualified tax payment” to mean an unreimbursed sales or use tax payment paid or incurred by the qualified taxpayer in the taxable year for certain tangible personal property purchased proximate to the date upon which a natural disaster destroyed a qualified taxpayer’s principal residence, major appliances, or residential furniture to replace those items, as specified.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill also would include additional information required for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.

Current Bill Text

Download Bill PDF