Tax Law Updates | New Proposed Legislation
March 11, 2010
CA State Assembly Passes Bill That Classifies Offshore Income As Domestic Income
California State Assembly AB 1178
AB 1178, 1/28/2010
The California State Assembly has approved by a vote of 41 to 28 legislation (“AB 1178”) that would classify income from offshore tax havens as domestic income for tax purposes.
Specifically, the bill aims to support California’s college students by reducing by $120 million annually the sales tax on textbooks and school supplies found at college bookstores. AB 1178 would take the burden off the shoulders of students by bringing in state revenues currently lost to a corporate tax loophole that allows for the use of foreign tax havens.
According to California Franchise Tax Board estimates, AB 1178 will generate…
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View a PDF of the proposed legislation
