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California Personal Income Tax: Proposition 30 Rate Increases With Estimated Taxes

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Posted by Mike C Posted on Jan 09 2013

An estimated tax underpayment penalty will not be imposed against taxpayers who underpay their estimated California personal income taxes to the extent that the underpayment was created or increased as a result of the personal income tax rate increases just approved by the voters with the passage of Proposition 30 (TAXDAY,2012/11/08, S.5 ). California law contains a safe-harbor provision for underpayments resulting from any provisionof law that is chaptered during and operative for the taxable year of the underpayment. (Cal Rev. & Tax Code§19136(2)(g)(1)) Consequently, taxpayers will not be required to make any catch-up payments.