The Governor was required to notify the Legislature by June 26, 2006 which bills she might veto. Yesterday, she provided the notice to the Legislature. Included in the list of bills that potentially be vetoed was SB2076 CD1 which would exclude from income taxation 100 percent of capital gains realized during taxable years 2007-2008 from the sale of leased fee interest in residential house lot or multi-family residential leasehold property to lessee, AOAO, or cooperative, subject to an aggregate cap of $800,000 per year. The Govenor’s message said that the cap would mean that only a relatively few units would be affected by the law.

Of particular interest is that HB3225 CD1 was not included on the Governor’s potential veto list. That means that the bill will become law either with the signature of the Governor or without her signature. HB3225 CD1 is the bill that cleans up provisions of the Recodification. See my prior post for more detailed information about the bill.

In addition to the list of bills that may be vetoed, the Governor has vetoed several bills.