SACRAMENTO >> Well before Wednesday night’s mad scramble to vote on measures, legislation to help businesses recover from natural disasters passed with unanimous bipartisan support.
If signed, the bill, authored by Assemblymember Bill Dodd (D-Napa) and Senator Mike McGuire (D-Healdsburg), will provide tax relief by allowing impacted businesses to defer tax payments without additional costs. The idea for the bill was brought forward by Board of Equalization Chairwoman Fiona Ma in the aftermath of the 2015 Valley Fire.
“When residents and businesses are impacted by disasters, the state needs to step up to help them recover. Giving these businesses additional time and flexibility in their tax deadlines is the least the state can do to help the recovery process,” Dodd said. “I’m proud to help lead these efforts with Senator Mike McGuire and Chairwoman Fiona Ma.”
Dodd added that he hope Gov. Brown would add his signature as quickly as possible to aid businesses suffering after recent fires.
Under this legislation, the Board of Equalization could grant filing extensions on a quarterly basis to victims of gubernatorially declared disasters for sales tax, use tax, and other taxes. The bill now moves on to the Governor’s desk, where if signed, the bill will take immediate effect statewide.
“Lake County has seen tremendous devastation in the wake of the Valley Fire last year, and now the Clayton Fire and small businesses need assistance in the aftermath of these disasters,” McGuire said.
Over the past several years California has experienced some of the most destructive fires in our states history. In 2015 Dodd’s 4th Assembly District contained nearly 58 percent of the total extinguished acreage by Cal Fire across the entire state. In Lake County alone, the Valley Fire destroyed nearly two thousand structures over a 23 day period, ultimately becoming the 3rd most destructive fire in California history. The 2016 wildfire season has already devastated communities across the state, with the Clayton Fire destroying hundreds of buildings in Lower Lake.
“The last thing a business owner needs to worry about is having to pay taxes for a business that just flooded or burned down,” Ma pointed out. “Assemblymember Dodd introduced this bill in response to last year’s fire season, but every community across California that has ever experienced a disaster understands why this measure is important and common sense when it’s time to recover and rebuild.”
The measure could provide relief to businesses impacted by fires from Lower Lake to Big Sur to San Bernardino County. The bill would also allow the BOE to help victims recover from future major fires, floods, earthquakes, and other natural disasters.
