LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 13, 2015 TO: Honorable John T. Smithee, Chair, House Committee on Judiciary & Civil Jurisprudence FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB419 by Wu (Relating to federal income tax liability for certain damages awarded in certain civil actions.), As Introduced No fiscal implication to the State is anticipated. The bill would amend the Civil Practice and Remedies Code by adding a new section regarding federal income tax liability for certain damages awarded in civil actions. The bill would address the situation where a claimant's award for compensatory damages (for loss of earnings, earning capacity, etc) is reduced based on a finding or instruction that the recovery is not subject to federal income tax. If it were later determined that the claimant was liable for federal income tax on that recovery, the bill requires the defendant to pay the claimant an amount sufficient to satisfy the claimant's tax liability for that recovery. Based on the analysis of the Office of Court Administration, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:212 Office of Court Administration, Texas Judicial Council LBB Staff: UP, FR, GDz
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
April 13, 2015
TO: Honorable John T. Smithee, Chair, House Committee on Judiciary & Civil Jurisprudence FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB419 by Wu (Relating to federal income tax liability for certain damages awarded in certain civil actions.), As Introduced
TO: Honorable John T. Smithee, Chair, House Committee on Judiciary & Civil Jurisprudence
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB419 by Wu (Relating to federal income tax liability for certain damages awarded in certain civil actions.), As Introduced
Honorable John T. Smithee, Chair, House Committee on Judiciary & Civil Jurisprudence
Honorable John T. Smithee, Chair, House Committee on Judiciary & Civil Jurisprudence
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB419 by Wu (Relating to federal income tax liability for certain damages awarded in certain civil actions.), As Introduced
HB419 by Wu (Relating to federal income tax liability for certain damages awarded in certain civil actions.), As Introduced
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would amend the Civil Practice and Remedies Code by adding a new section regarding federal income tax liability for certain damages awarded in civil actions. The bill would address the situation where a claimant's award for compensatory damages (for loss of earnings, earning capacity, etc) is reduced based on a finding or instruction that the recovery is not subject to federal income tax. If it were later determined that the claimant was liable for federal income tax on that recovery, the bill requires the defendant to pay the claimant an amount sufficient to satisfy the claimant's tax liability for that recovery. Based on the analysis of the Office of Court Administration, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 212 Office of Court Administration, Texas Judicial Council
212 Office of Court Administration, Texas Judicial Council
LBB Staff: UP, FR, GDz
UP, FR, GDz