Bill Aligns Calif. Tax With Federal Health Reforms
SACRAMENTO, Calif. (AP) -- 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.
Under the national health care reforms that took effect in September, parents can include children up to age 26 on their employer-provided health care plans, even if the children are married or have full-time jobs.
The California bill means the amount used to cover those children will not be taxed.
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