The Personal Income Tax Law, in modified conformity with federal law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income for purposes of computing tax liability.
Existing law generally provides for the reimbursement of victims and derivative victims of specified types of crimes by the California Victim Compensation Board from the Restitution Fund, a continuously appropriated fund, for specified losses suffered as a result of those crimes.
This bill would state the intent of the Legislature to enact subsequent legislation relating to the exclusion of compensation received from the California Victim Compensation Board from the definition of gross income for the purpose of
taxation. provide that payments made by the board pursuant to specified law are deemed to be for the promotion of the general welfare and are not included in gross income.
This bill would take effect immediately as a tax levy.