SB 1343: Income tax credit: sales and use tax paid: natural disasters.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

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 taxable years beginning on or after January 1, 2027, and before January 1, 2032, a credit against those taxes to a qualified taxpayer, as defined, in an amount equal to 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.

Sponsors

Sponsors by party (alphabetical): Democratic 5 · Republican 3

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. May 14, 2026May 14 hearing: Held in committee and under submission.
2. May 8, 2026Set for hearing May 14.
3. May 4, 2026May 4 hearing: Placed on APPR. suspense file.
4. April 28, 2026Set for hearing May 4.
5. April 23, 2026Read second time and amended. Re-referred to Com. on APPR.
6. April 22, 2026From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 4016.) (April 22).
7. April 9, 2026Set for hearing April 22.
8. March 4, 2026Referred to Com. on REV. & TAX.
9. February 23, 2026Read first time.
10. February 23, 2026From printer. May be acted upon on or after March 23.
11. February 20, 2026Introduced. To Com. on RLS. for assignment. To print.