Bill Text: CA AB1791 | 2015-2016 | Regular Session | Amended

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Bill Title: Personal income taxes: exclusion: military retirement pay.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2016-11-30 - From committee without further action. [AB1791 Detail]

Download: California-2015-AB1791-Amended.html

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BILL NUMBER: AB 1791	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 12, 2016
	AMENDED IN ASSEMBLY  MARCH 18, 2016

INTRODUCED BY   Assembly Member Lopez

                        FEBRUARY 4, 2016

   An act to add Section 17132.9 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1791, as amended, Lopez. Personal income taxes: exclusion:
military retirement pay.
   The Personal Income Tax Law provides various exclusions from gross
income in determining tax liability, including an exclusion for
combat-related special compensation and death benefit payments
received by a surviving spouse or other beneficiary designated by a
military veteran, as prescribed, who dies or is killed in the
performance of duty, as provided.
   This bill, for taxable years beginning on  or 
 and  after January 1, 2016,  and before January 1,
2019,  would exclude from gross income retirement pay received
by a taxpayer from the federal government for military service
performed in the Armed Forces of the United States, the reserve
component of the Armed Forces of the United States, or the National
Guard, and survivor benefits received by a taxpayer from the federal
government, as specified.  The bill would make these provisions
operative on the effective date of any budget measure specifically
appropriating funds to the Franchise Tax Board for its costs of
administering these provisions. 
   This bill would take effect immediately as a tax levy.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 17132.9 is added to the Revenue and Taxation
Code, to read:
   17132.9.  (a) For each taxable year beginning on  or
  and  after January 1, 2016,  and before
January 1, 2019,  gross income shall not include retirement pay
received by a taxpayer from the federal government for military
service performed in the Armed Forces of the United States, the
reserve component of the Armed Forces of the United States, or the
National Guard.
   (b) For each taxable year beginning on  or  
and  after January 1, 2016,  and before January 1, 2019,
 gross income shall not include survivor benefits received by a
taxpayer from the federal government pursuant to Chapter 73 of Title
10 of the United States Code. 
   (c) This section shall become operative on the effective date of
any budget measure specifically appropriating funds to the Franchise
Tax Board for its costs of administering this section. 
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the  California  Constitution and shall go
into immediate effect.