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Assembly Revenue and Taxation committee hears bills on disaster savings, tips tax, homelessness cleanup, child care fund and insurance relief; consent items win
Summary
The Assembly Committee on Revenue and Taxation met as a subcommittee and heard testimony on a set of tax and relief proposals for homeowners, workers and small businesses. Most measures were designated suspense candidates for later committee consideration; the committee approved a consent block of four bills by roll call.
The Assembly Committee on Revenue and Taxation met as a subcommittee and heard testimony on a slate of tax and relief proposals affecting homeowners, small businesses, child care providers and workers. Committee members established that most bills presented that day are “suspense candidates” and will be referred to the committee’s suspense file for later consideration; the committee took one formal vote on a consent block of four bills, which passed 4-0.
A trio of bills dealing with disaster and insurance affordability drew detailed testimony. Assemblymember Cecilia Calderón presented AB 232, which would allow California homeowners to create a pretax catastrophe savings account at a local bank or credit union, with interest accruing tax-exempt. Qualified uses spelled out in testimony include home hardening, insurance deductibles and other recovery costs after a wildfire, flood or earthquake declared a state of emergency. Josephine Figueroa, deputy commissioner and legislative director at the California Department of Insurance, told the committee AB 232 would “allow individuals to set aside state income tax free money to pay for qualified catastrophe expenses.” Chris Schultz of the California Bankers Association said the proposal resembles health savings accounts and called the tax incentive “modest,” arguing it could encourage homeowners to prepare and cover higher deductibles out-of-pocket.
Assemblymember Castillo introduced AB 1443, a proposed five-year exclusion of tips from state income tax for service workers. The author said the measure would “exclude tips from state income taxes for the next 5 years” and framed it as targeted relief for restaurant, hospitality, beauty and rideshare workers. Matt Sutton of the California Restaurant Association spoke in support, calling the measure “a step in the right direction” for the industry’s affordability challenges. No witnesses appeared in opposition; the committee designated the bill a suspense candidate to be returned to the suspense file.
Small-business owners urged support for AB 1435, introduced by Assemblymember Wen, which would let owners recover certain costs tied to unauthorized encampments and illegal dumping on or adjacent to their properties. Testimony from business owners described recurring damage, hazardous waste and security costs: one owner said, “I actually had a homeless encampment next to my business about 300 feet away for 3 years,” and described having to pay for fence repairs and private security. Multiple business and real-estate associations registered support. The bill was placed on the suspense file.
On child care, AB 1428, presented by Assemblymember Marc",
