Attorney General No.
Secretary of State No.
Establishes that life insurance proceeds received by an employer upon the death of a former or retired employee will be considered taxable gross income when the employer lacks an “insurable interest” in the employee. Exempts employers who are charitable organizations. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: State revenue increases of up to several millions of dollars from higher business income taxes in some years.
Failed to Qualify
TAX ON EMPLOYERS WHO COLLECT LIFE-INSURANCE BENEFITS UPON THE DEATH OF FORMER EMPLOYEES. INITIATIVE STATUTE California Initiative 1363 (2009).