Income taxes: disallowance of deductions: advertising: tobacco.

The Personal Income Tax Law and Corporation Tax Law allow deductions for various expenditures in computing taxable or net income, including, with certain exceptions, all ordinary and necessary expenses paid or incurred during the taxable and income year in carrying on any trade or business. This bill would provide under both laws that a deduction shall not be allowed for specified expenses paid or incurred to advertise, as defined, the sale, use, or consumption of cigarettes or other tobacco products. This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature. This bill would take effect immediately as a tax levy.