BILL NUMBER: AB 877	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 11, 2014
	PASSED THE ASSEMBLY  AUGUST 28, 2014
	AMENDED IN SENATE  MAY 6, 2014
	AMENDED IN ASSEMBLY  JANUARY 6, 2014

INTRODUCED BY   Assembly Members Bocanegra and Jones-Sawyer

                        FEBRUARY 22, 2013

   An act to add Sections 17228 and 24343.8 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 877, Bocanegra. Income and Corporation taxes: denial of
deduction: owner fine or penalty.
   The Personal Income Tax Law and the Corporation Tax Law allow
various deductions in computing the income that is subject to the
taxes imposed by those laws. Both laws allow a deduction for ordinary
and necessary business expenses, including a deduction for amounts
paid or incurred for specified types of fines or penalties.
    This bill, for taxable years beginning on or after January 1,
2014, would disallow, under both laws, a deduction for the amount of
any fine or penalty paid or incurred by an owner of all or part of a
professional sports franchise where that fine or penalty is assessed
or imposed by the professional sports league that includes that
franchise.
   This bill would include a change in state statute that would
result in a taxpayer paying a higher tax within the meaning of
Section 3 of Article XIII A of the California Constitution, and thus
would require for passage the approval of 2/3 of the membership of
each house of the Legislature.
   This bill would take effect immediately as a tax levy.


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

  SECTION 1.  Section 17228 is added to the Revenue and Taxation
Code, to read:
   17228.  For taxable years beginning on or after January 1, 2014, a
deduction shall not be allowed for the amount of any fine or penalty
paid or incurred by an owner of all or part of a professional sports
franchise, where that fine or penalty is assessed or imposed by the
professional sports league that includes that franchise.
  SEC. 2.  Section 24343.8 is added to the Revenue and Taxation Code,
to read:
   24343.8.  For taxable years beginning on or after January 1, 2014,
a deduction shall not be allowed for the amount of any fine or
penalty paid or incurred by an owner of all or part of a professional
sports franchise, where that fine or penalty is assessed or imposed
by the professional sports league that includes that franchise.
  SEC. 3.   This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.