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| Northern California suffered
major flooding on New Years Eve 2006. In two proclamations, on
January 2 and 3, 2006, the Governor declared states of emergency in 23 counties. This sets the stage for a
potential federal disaster declaration.
On February 3, 2006, the
President declared a
major disaster exists in the State of California and ordered Federal
aid to supplement State and local recovery efforts in the area
struck by severe storms, flooding, mudslides, and landslides from
December 17, 2005, through and including January 3, 2006.
For the full text of the statement click here.
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FEMA immediately updated its web site with information about its
assistance programs.
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FEMA opens Napa center
Beware
unlicensed contractors
When an area is declared a
national disaster, it is a felony for an unlicensed contractor to
take a job that pays more than $500.
"Out-of-state contractors are not allowed to do business in
California in areas that have been declared a national disaster,"
Vega said. "We snag one of them, and it's a trip to jail."
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The SBA is expected to update its web site shortly.
The IRS is also
expected to update its web site shortly.
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A federal disaster declaration
allows taxpayers in the affected areas some potentially favorable
tax benefits, for example, the ability to claim the casualty loss on
either the current or preceding year's tax return.
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The Internal Service's web
site has an area devoted to disaster tax relief. In the wake
of the 2005 hurricanes, special legislation followed providing major
tax benefits to those affected.
You can access that IRS information here.
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We also have
additional information on the 2005 hurricane legislation at our
Forum. |
