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Bill

AB 27

Personal Income Tax Law: Corporation Tax Law: Chiquita Canyon elevated temperature landfill event: exclusions.

2025-2026 Regular Session Introduced by Ben Allen and 6 co-sponsors

Allows California taxpayers affected by 2023 Chiquita Canyon landfill fire to exclude disaster-related losses from state income and corporate tax liability.

In committee: Set, first hearing. Hearing canceled at the request of author.
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WeVote Research Nonpartisan
Bill Summary · AB 27

Legislative bill overview

AB 27 provides tax exclusions for businesses and individuals affected by the 2023 Chiquita Canyon landfill fire in Santa Barbara County. The bill allows affected taxpayers to exclude disaster-related losses and expenses from California personal income and corporation tax calculations for the tax year in which the event occurred.

Why is this important

The Chiquita Canyon landfill fire caused significant property damage and business disruption in the affected region. Tax exclusions can help offset financial losses for impacted residents and businesses, potentially accelerating economic recovery in the area. This type of targeted tax relief is a common policy tool following major disasters, though it represents foregone state revenue.

Potential points of contention

  • Revenue impact: The state foregoes tax revenue from affected taxpayers, with costs potentially ranging from thousands to millions depending on loss valuations and the number of eligible claimants
  • Scope and eligibility: Questions about which taxpayers qualify (direct property owners only, or also businesses with indirect losses?), how losses are verified, and whether the exclusion is appropriately limited in time and amount
  • Precedent concerns: Disaster-specific tax breaks may create expectations for similar treatment after future events, potentially establishing fiscal commitments difficult to control

Compiled from official sources — confirm details with the bill’s official record.

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