Income taxes: gross income exclusions: state of emergency: natural disaster settlements.
- Exempts natural disaster settlement payments from state income tax starting January 2025.
- Applies to property owners, residents, and businesses in Governor-declared disaster areas.
- Requires settlement entities to provide payment documentation to tax authorities upon request.
- Mandates state tax board to report on program effectiveness every five years starting 2030.
Senator Choi, along with Senators Jones and Niello, proposes excluding natural disaster settlement payments from California state income taxes for residents and businesses affected by governor-declared emergencies. The legislation creates parallel exclusions in both personal and corporate tax codes for amounts received from court-approved settlement administrators to replace damaged or destroyed property.
The exclusions would apply to property owners, residents, and businesses located in disaster-affected areas who receive settlement payments for expenses arising from the emergency. Settlement administrators must provide documentation of payments upon request from either the Franchise Tax Board or the recipient taxpayer. The provisions would take effect immediately and apply to tax years beginning January 1, 2025.
The Franchise Tax Board must report to the Legislature every five years starting December 2030 on the number of taxpayers utilizing these exclusions. This reporting requirement allows lawmakers to monitor the provisions' usage while maintaining taxpayer confidentiality protections under existing law.
This bill was recently introduced. Email the authors to let them know what you think about it.
Introduced By
 Roger NielloR Senator | Bill Author |  Not Contacted | |
 Brian JonesR Senator | Bill Author | Not Contacted | |
 Steven ChoiR Senator | Bill Author | Not Contacted | |
 Tim GraysonD Senator | Committee Member | Not Contacted | |
 Tom UmbergD Senator | Committee Member | Not Contacted |
| Bill Number | Title | Introduced Date | Status | Link to Bill |
|---|---|---|---|---|
SB-927 | Income taxes: gross income exclusions: state of emergency: natural disaster settlements. | January 2024 | Failed |
- Exempts natural disaster settlement payments from state income tax starting January 2025.
- Applies to property owners, residents, and businesses in Governor-declared disaster areas.
- Requires settlement entities to provide payment documentation to tax authorities upon request.
- Mandates state tax board to report on program effectiveness every five years starting 2030.
This bill was recently introduced. Email the authors to let them know what you think about it.
Introduced By
Senator Choi, along with Senators Jones and Niello, proposes excluding natural disaster settlement payments from California state income taxes for residents and businesses affected by governor-declared emergencies. The legislation creates parallel exclusions in both personal and corporate tax codes for amounts received from court-approved settlement administrators to replace damaged or destroyed property.
The exclusions would apply to property owners, residents, and businesses located in disaster-affected areas who receive settlement payments for expenses arising from the emergency. Settlement administrators must provide documentation of payments upon request from either the Franchise Tax Board or the recipient taxpayer. The provisions would take effect immediately and apply to tax years beginning January 1, 2025.
The Franchise Tax Board must report to the Legislature every five years starting December 2030 on the number of taxpayers utilizing these exclusions. This reporting requirement allows lawmakers to monitor the provisions' usage while maintaining taxpayer confidentiality protections under existing law.
Roger NielloR Senator | Bill Author | Not Contacted | |
Brian JonesR Senator | Bill Author | Not Contacted | |
Steven ChoiR Senator | Bill Author | Not Contacted | |
Tim GraysonD Senator | Committee Member | Not Contacted | |
Tom UmbergD Senator | Committee Member | Not Contacted |
| Bill Number | Title | Introduced Date | Status | Link to Bill |
|---|---|---|---|---|
SB-927 | Income taxes: gross income exclusions: state of emergency: natural disaster settlements. | January 2024 | Failed |