California usually is a bellwether when it comes to legislation, but this time it's playing follow the federal tax law change leader.
U.S. Sen. Marco Rubio (R-Fla.) kicked off the Olympics no-tax trend by introducing a bill that would exempt the value of Olympic medals and the accompanying prize money of $25,000 for gold, $15,000 for silver and $10,000 for bronze from federal taxation. A companion piece has been introduced in the U.S. House.
Now some Golden State legislators say the same exclusion from income should apply at their state's level.
Republican Assemblyman Allan Mansoor, a member of a bipartisan Olympic coalition, estimates that a gold medal winner would pay an average of $1,450 in Golden State taxes. A bronze-medal winner from California would owe the state tax collector an average of $580.
Joining Mansoor in the no-state-taxes-for-medalists movement are fellow GOP Assemblymen Curt Hagman and Chris Norby. Support on the California Senate side comes from Democrats Ron Calderon and Lou Correa.
The bill would, according to Hagman, "prevent unnecessary additional taxes from being levied on Olympic medals and prize money won by American athletes living in California during the Olympic Games. This would apply to awards received after December 31, 2011 to include our current crop of athletes participating in London."
The California lawmakers say they are particularly interested in the tax relief because around a quarter of all U.S. Olympians are from their state, giving it the most representation in the Olympic delegation.
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