It appears that the proposed bill to prevent California taxpayers from deducting punitive damages as business expenses (AB 458), which passed in the California Assembly in July, will not see a floor vote in the Senate. The Daily Journal (subscription required) is reporting that Sen. Ron Calderon, who had been backing the bill in the Senate, has withdrawn his support. Calderon’s move comes just days before the legislative session ends on September 13. His decision to abandon the bill may have something to do with the fact that the California Chamber of Commerce and the Civil Justice Association of California both announced their opposition to the bill late last week.
A similar bill, AB 1276, failed on the Assembly floor in 2011.
Related posts:
Committee on Appropriations approves bill to prohibit deductions of punitive damages
Another proposal to prohibit California taxpayers from deducting punitive damages
Assembly rejects proposal to eliminate tax deductions for punitive damages
Proposed California bill would prevent tax deductions for punitive damages
