Assembly Rejects Bill Denying Tax Breaks to Social Clubs With Biases
- Share via
SACRAMENTO — The Assembly on Monday rejected a bill patterned after federal tax laws denying income tax exemptions to social clubs that discriminate on the basis of race, color, religion, age or sex.
The measure went down on a 39-36 party line vote, fifteen short of the two-thirds majority or 54 votes required for approval of tax measures. All 39 yes votes came from Democrats, all 36 no votes from Republicans.
The sponsor of the legislation, Assemblyman Johan Klehs (D-San Leandro), said he would seek reconsideration at some later date.
The 1987 Legislature approved, and Gov. George Deukmejian signed into law, a bill to prohibit state tax deductions for business expenses at private clubs that discriminate against women and minorities, starting in 1990.
Franchise Tax Board regulations to accomplish the same goal went into effect last Jan. 1.
“This bill is another step in the right direction,” Klehs said. “The question is should we subsidize social clubs that discriminate, and I say we shouldn’t.”
Get the L.A. Times Politics newsletter
Deeply reported insights into legislation, politics and policy from Sacramento, Washington and beyond. In your inbox three times per week.
You may occasionally receive promotional content from the Los Angeles Times.
