Bill Text: CA AB1276 | 2011-2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Income taxes: deductions: punitive damages.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-01-30 - Read third time. Refused passage. (Ayes 50. Noes 26. Page 3634.). [AB1276 Detail]

Download: California-2011-AB1276-Introduced.html

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BILL NUMBER: AB 1276	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Feuer

                        FEBRUARY 18, 2011

   An act to amend Section 24343.2 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1276, as introduced, Feuer. Net income: deduction:
nondiscrimination.
   The Corporation Tax Law prohibits deductions for a club, as
defined, that restricts membership or the use of its services or
facilities on the basis of ancestry or other characteristics, as
specified.
   The bill would make a technical, nonsubstantive change to this
provision.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 24343.2 of the Revenue and Taxation Code is
amended to read:
   24343.2.  Whereas, the people of the State of California desire to
promote and achieve tax equity and fairness among all the state's
 citizens   residents  and further desire
to conform to the public policy of nondiscrimination, the Legislature
hereby enacts the following for these reasons and for no other
purpose:
   (a) No deduction shall be allowed under Section 24343 for expenses
incurred by a taxpayer with respect to expenditures made at, or
payments made to, a club which restricts membership or the use of its
services or facilities on the basis of ancestry or any
characteristic listed or defined in Section 11135 of the Government
Code.
   (b) A club described in subdivision (a) holding an alcoholic
beverage license pursuant to Division 9 (commencing with Section
23000) of the Business and Professions Code, except a club holding an
alcoholic beverage license pursuant to Section 23425 thereof, shall
provide on each receipt furnished to a taxpayer a printed statement
as follows:
   "The expenditures covered by this receipt are nondeductible for
state income tax purposes or franchise tax purposes."
   (c) For purposes of this section:
   (1) "Expenses" means those expenses otherwise deductible under
Section 24343, except for subdivision (a), and includes, but is not
limited to, club membership dues and assessments, food and beverage
expenses, expenses for services furnished by the club, and
reimbursements or salary adjustments to officers or employees for any
of the preceding expenses.
   (2) "Club" means a club as defined in Division 9 (commencing with
Section 23000) of the Business and Professions Code, except a club as
defined in Section 23425 thereof.