Personal income taxes: deductions: transportation improvement fee.

The Personal Income Tax Law allows various deductions in computing the income that is subject to the taxes imposed by that law including, in conformity with federal tax law, a deduction for personal property taxes such as the vehicle license fee. Existing law imposes a transportation improvement fee under the Vehicle License Fee Law with a fee between $25 and $175 based on vehicle value and with an inflation adjustment, as provided. This bill would state that to the extent the transportation improvement fee is a personal property tax for federal income tax purposes, it is allowed as a deduction in computing the income subject to taxes pursuant to the Personal Income Tax Law.