As people rebuild in Pacific Palisades most have a gap between what they receive from insurance and what it will cost to rebuild.
Senators Ben Allen (D-PacificPalisades) and Meagn Dahle (R-Bierber) have introduced a new bill SB1343 that they hope will make it past the Senate Committee on Revenue and Taxation and to a full vote in the Senate.
The bill proposes an income tax credit of up to $10,000 that could be given to recoup sales tax costs for construction materials or furniture purchased within three years of a disaster.
Construction materials eligible for the tax credit would include items such as tools and hardware, roofing shingles and paper, gutters, downspouts, vents, doors, windows, sheetrock, drywall, insulation, paint and paint materials, cleaning and disinfecting materials and flooring. It would apply to these construction items that are less than $500 per unit.
Eligible furniture items, beyond those commonly found in a home, would also include appliances such as water heaters, dishwashers, washer and dryer units, refrigerators and freezers, stoves, ovens, cooktops, microwaves, vacuums, and fans. It would apply to these items that are less than $3,500 each.
CTN asked, “If someone has lost their home and must replace everything, the most one can expect if this passes is a $10,000 sales tax credit?”
“Yes, the total credit they can recoup under the existing language is $10,000,” Cheever said.
Allen’s office was asked about the likilhood of this Bill passing into law. “We believe there should be broad support across the state given it applies to disaster recoveries beyond the LA Fires,” Allen’s Press Secretary Ben Cheever said. “Our partner author for this bill is a Republican who represents the north-most district in California. No district is immune to the risk of a natural disaster.”
Cheever promised to keep CTN abreast of the bill when it comes up for a hearing.
