April 20, 2010
A ban on taxing forgiven mortgage debt, SB 401 (Wolk), has been signed by the Governor. The Governor vetoed the ban extension earlier this year due to unrelated provisions in the bill regarded as anti-business. In 2008 the Governor approved a bill that forgave the debt for two. This bill extends the ban through the end of 2012. The Franchise Tax Board estimates 100,000 people may benefit from the ban.