Bill > SB159

This bill amends California's tax laws to provide a more precise definition of tax exemptions related to wildfire disaster settlements. Specifically, the bill clarifies that for personal income and corporation taxes between 2021 and 2030, certain settlements received in connection with a "qualified wildfire disaster" will be exempt from gross income. A qualified wildfire disaster is defined as a wildfire emergency declared by either the Governor of California or the President of the United States under the Stafford Disaster Relief and Emergency Assistance Act. Qualified taxpayers include property owners, business owners, and residents in areas damaged by these wildfires who have paid expenses or received settlement payments related to the disaster. The bill requires settlement entities to provide documentation of payments upon request and allocates $10,000 from the General Fund to the Franchise Tax Board to administer these wildfire disaster settlements. Because the bill involves a change that could potentially increase taxes, it requires approval by two-thirds of the Legislature, and it is designed to take effect immediately as part of the state budget process, with the tax exemption provisions set to expire on December 1, 2030.

Budget and Finance

Budget and Fiscal Review (Senate)

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB159