Income taxes: exclusion.

The Personal Income Tax Law and the Corporation Tax Law, in modified conformity with federal income tax laws, provide for particular treatment of regulated investment companies, as specified, including by authorizing a regulated investment company to pay exempt-interest dividends to its shareholders if, at the close of each quarter of its taxable year, at least 50 percent of the value of its total assets consists of obligations that, when held by an individual, the interest therefrom is exempt from taxation by this state. This bill would authorize a regulated investment company to pay exempt-interest dividends to its shareholders without requiring 50 percent of the value of its total assets to be constituted as described above. This bill would take effect immediately as a tax levy.