Bill Text: TX HB419 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to federal income tax liability for certain damages awarded in certain civil actions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-04-14 - Left pending in committee [HB419 Detail]
Download: Texas-2015-HB419-Introduced.html
84R2717 SCL-D | ||
By: Wu | H.B. No. 419 |
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relating to federal income tax liability for certain damages | ||
awarded in certain civil actions. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 41, Civil Practice and Remedies Code, is | ||
amended by adding Section 41.015 to read as follows: | ||
Sec. 41.015. FEDERAL INCOME TAX LIABILITY FOR CERTAIN | ||
DAMAGES. If compensatory damages awarded to a claimant for loss of | ||
earnings, loss of earning capacity, loss of contributions of a | ||
pecuniary value, or loss of inheritance are reduced for federal | ||
income tax payments or liability as described by Section 18.091(a) | ||
and are awarded based on a finding or instruction that a recovery | ||
for those damages is not subject to federal income tax, and if the | ||
claimant is later determined to be liable for federal income tax on | ||
that recovery, a defendant found liable for those damages must pay | ||
the claimant an amount sufficient to satisfy the claimant's federal | ||
income tax liability for that recovery. | ||
SECTION 2. The change in law made by this Act applies only | ||
to an action that commences on or after the effective date of this | ||
Act. An action that commences before the effective date of this Act | ||
is governed by the law applicable to the action immediately before | ||
the effective date of this Act, and that law is continued in effect | ||
for that purpose. | ||
SECTION 3. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2015. |