Governor Signs Hollingsworth’s Fire Victim Tax Relief Bill

Senator Dennis Hollingsworth (R-El Cajon) announced that Governor Arnold Schwarzenegger has signed into law Senate Bill 1147 which protects the homeowners’ state tax exemption for those who are in the process of rebuilding homes damaged or destroyed in the wildfires of 2003.

Normally, State law provides each homeowner an exemption for their first $7,000 in income on their state income tax form. The law requires the homeowner to occupy the home as the principal place of residence. Yet, while the exemption applies automatically, if the home is not occupied on January 1st of each year, the homeowner loses the exemption. Hollingsworth’s bill provides that homeowners who are not able to occupy their home due to damage or destruction from last fall’s wildfires will still be able to have their normal exemption and not be hit with a higher tax bill while they are trying to rebuild.

“Many of the survivors of the 2003 wildfires have suffered tremendous losses and are still trying to rebuild,” said Senator Hollingsworth. “Losing this tax break that every other homeowner is entitled to, just because their house was destroyed, would be the government adding insult to injury. It is only reasonable that the people most affected by the fires be allowed to continue to claim their homeowners exemption while they are rebuilding,” Hollingsworth concluded.

“I want to thank Governor Schwarzenegger for agreeing with me that every bit of assistance we can give to those still desperately trying to rebuild and get their lives back on track, is essential. His signing this bill into law shows he shares my concern that we not forget those who are still in need from these disasters,” said Hollingsworth. Hollingsworth’s 36th Senate District was the hardest hit area of Southern California in last fall’s fires, with more than 2,400 homes being lost to the flames.

In addition to those affected by the 2003 fires, SB 1147 also extends the homeowners’ exemption for victims of the December 2003 San Simeon earthquake who are rebuilding, as well as those who suffered damage in San Joaquin County’s Middle River levee break in June of 2004.

Dennis Hollingsworth is the Senate Republican Caucus Whip representing the 36th District, which includes inland North, and East San Diego County, portions of the City of San Diego, and Southwest Riverside County.