California State Lottery: taxation.

The California State Lottery Act of 1984, an initiative measure approved by the voters at the November 6, 1984, statewide general election, authorizes a California State Lottery and provides for its operation and administration by the California State Lottery Commission. Existing statutory provisions under the act prohibit state and local taxes from being imposed upon any prize awarded by the lottery, including upon any amount received by a prizewinner pursuant to an assignment, as specified. Existing law excepts from this taxing prohibition, the imposition of property taxes or license fees for a noncash prize. ACA ____ of the 2019–20 Regular Session, if approved by the voters, would amend the act by amending the California Constitution to impose state taxes on lottery prizes, as specified. This bill would implement ACA ____ of the 2019–20 Regular Session by authorizing the imposition of state taxes on lottery prizes to the extent authorized by the California Constitution. The bill would become operative only if ACA ____ of the 2019–20 Regular Session is approved by the voters.