News Headlines Article

Bill aligns Calif. tax with federal health reforms
San Francisco Chronicle

The California Legislature has approved a bill ensuring that employer-provided health coverage for the adult children of employees will not be taxed.

The bill, AB36, would align state tax code with federal law. It passed 35-0 Thursday in the Senate, after the Assembly approved it earlier this month.

If Gov. Jerry Brown signs the legislation, the state would forgo $40 million in annual tax revenue.