Arnie claims tax gets the go-ahead
Legal Week reports
August 04, 2004 at 08:03 PM
2 minute read
A proposal by California governor Arnold Schwarzenegger to tax punitive damages in the state has received the green light following an 11th-hour push to water down the controversial proposals.
The litigation tax is contained in Schwarzenegger's $105bn (£58bn) budget, which was passed by California's Assembly on 29 July by 28 votes to 11, after a compromise was hammered out on the controversial plan.
The original model would have seen the state impose a 75% tariff on all awards handed out by local juries for loss or personal injury. In its place is a 'sunset provision' that limits the time frame of cases to two years. This means only cases that are completed – from initial filing to appeal – by June 2006 will be subject to the tariff.
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