Income tax: exclusion: disasters.

Assembly Member Tangipa's disaster relief tax measure would exclude up to $300,000 in annual income from state taxation for California residents and businesses whose properties become uninhabitable due to disasters. The exclusion would apply during both the year of the disaster and the following year.

The proposal defines qualified recipients as property owners, residents, or business operators whose real estate burns or becomes uninhabitable due to a disaster as defined in state law. To claim the exclusion, taxpayers must provide documentation to the Franchise Tax Board verifying their eligibility. The measure's authors state its purpose is enabling disaster victims to focus on recovery without tax burden concerns.

If enacted, the exclusion would take effect immediately and remain available for disasters occurring between 2025 and 2035, after which the provisions would sunset. The bill requires majority approval but no direct appropriation of state funds.