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Workers´ Compensation Tax Break Ok´d

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A state board has unanimously approved a tax break that will save workers´ compensation insurance companies more than $200 million.

The Board of Equalization overturned a decision by Insurance Commissioner Harry Low to tax reimbursements paid by businesses to workers comp carriers.

Yesterday´s decision came the same day that Governor Davis announced the state was facing nearly a $35 billion budget deficit.

Low says he’ll urge Commissioner-elect John Garamendi to ask the board to reconsider the decision after he takes office January 6. The board will also get three new members on that date.

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