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CALIFORNIA LEGISLATURE—
2017–2018 REGULAR SESSION
Senate Bill | No. 66 |
Introduced by Senator Wieckowski |
January 05, 2017 |
An act to add Sections 17226 and 24343.4 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 66, as introduced, Wieckowski.
Income taxes: deductions: punitive damages.
The Personal Income Tax Law and the Corporation Tax Law allow various deductions in computing the income that is subject to the taxes imposed by those laws. Both laws allow a deduction for ordinary and necessary business expenses, including a deduction for amounts paid or incurred for specified types of punitive damages.
This bill, for taxable years beginning on or after January 1, 2018, would disallow, under both laws, a deduction for amounts paid or incurred for punitive damages, as provided.
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of
2/3 of the membership of each house of the Legislature.
This bill would take effect immediately as a tax levy.