Attorney General No.

SA2002RF0017

Secretary of State No.

969

Description

PERSONAL INCOME TAX. TREATMENT OF STOCK PURCHASED THROUGH INCENTIVE STOCK OPTIONS. INITIATIVE STATUTE. Amends state personal income tax law relating to sale of stock purchased through incentive stock option programs. Exempts unrealized gains from exercise of incentive stock options from alternative minimum tax provisions; subjects gains realized upon sale of stock purchased through incentive stock options to regular tax provisions. Removes limitations on minimum tax credit allowed taxpayers who paid alternative minimum tax when they exercised incentive stock options; provides full refund for minimum tax credit in year stock purchased through incentive stock options is sold. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: This measure would have the major fiscal effect of first-year state revenue reduction in the low hundreds of millions of dollars, with annual revenue losses declining somewhat in subsequent years.

Proponents

Christopher L. Samuelson, 452 28th Street, San Francisco, CA 94131

Date

8-27-2002

Document Type

Initiative

Qualified

Failed to Qualify

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