By Brian Sumers
Some investors will be exempted from a specific retroactive tax under a bill introduced by Torrance Democratic state Sen. Ted Lieu and signed into law Friday by Gov. Jerry Brown.
The law affects anyone who invested money in a business covered by the California’s Qualified Small Business Stock tax benefit, which was enacted in 1993 and permitted certain tax breaks in exchange for investment in California companies. But in a 2012 decision, a California appeals court found the law violated the commerce clause of the U.S. Constitution.