Bill Text: CA SB911 | 2023-2024 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Income taxation: exclusion: military survivor benefits.

Spectrum: Strong Partisan Bill (Republican 14-1)

Status: (Introduced) 2024-05-16 - May 16 hearing: Held in committee and under submission. [SB911 Detail]

Download: California-2023-SB911-Amended.html

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Amended  IN  Senate  March 05, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 911

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Introduced by Senator Seyarto

January 08, 2024

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An act to add and repeal Section 17140.6 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL'S DIGEST

SB 911, as amended, Seyarto. Income taxation: exclusion: military survivor benefits.

The Personal Income Tax Law, in modified conformity with federal law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income for purposes of computing tax liability. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill, for taxable years beginning on or after January 1, 2025, and before January 1, 2030, 2035, would provide an exclusion from gross income for survivor benefits or payments, not to exceed $20,000 per taxable year, received on or after January 1, 2025, and before January 1, 2030, during the taxable year under the federal Survivor Benefit Plan.

Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill would include additional information required for any bill authorizing a new tax expenditure.

This bill would take effect immediately as a tax levy.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 17140.6 is added to the Revenue and Taxation Code, to read:

17140.6.

 (a) For taxable years beginning on or after January 1, 2025, and before January 1, 2030, 2035, gross income does not include survivor benefits or payments, not to exceed twenty thousand dollars ($20,000) per taxable year, received on or after January 1, 2024, and before January 1, 2029, during the taxable year under a Survivor Benefit Plan established pursuant to Subchapter II (commencing with Section 1447) of Chapter 73 of Part II of Subtitle A of Title 10 of the United States Code, relating to survivor benefit plans.

(b) (1) (A) For the purposes of complying with Section 41 of the Revenue and Taxation Code, 41, the Legislature finds and declares that the goals, purposes, and objectives of the exclusion allowed under this section are both of the following:

(I)

(i) To recognize the loss and sacrifice of our military families and give them the support that our community owes them.

(II)

(ii) To provide some financial relief to families that have experienced not only the loss of a loved one, but also often the loss of the sole income of the family, and who are now trying to make ends meet on a portion of that original income.

(B) The performance indicators to measure whether the exclusion meets the goals, purposes, and objectives stated in paragraph (1) subparagraph (A) are as follows:

(I)

(i) The number of taxpayers excluding income from survivor benefit plans pursuant to this section.

(II)

(ii) The total dollar amount of income excluded pursuant to this section.

(III)

(iii) The total number of taxpayers in each tax bracket who excluded income pursuant to this section.

(2) On or before December 1, 2030, the Legislative Analyst, in collaboration with November 1, 2033, the Franchise Tax Board, Board shall submit a report to the Legislature, in compliance with Section 9795 of the Government Code, detailing the following information, to the extent data is available:

(A) The number of taxpayers excluding income from survivor benefit plans pursuant to this section.

(B) The total dollar amount of income excluded pursuant to this section.

(C) The total number of taxpayers in each taxbracket who excluded income pursuant to this section.

(3)(A)Taxpayer information received pursuant to this subdivision by the Legislative Analyst is subject to Section 19542 of the Revenue and Taxation Code.

(B)

(3) The disclosure provisions of paragraph (2) shall be treated as an exception to Section 19542.

(c) This section shall remain in effect only until December 1, 2030, 2035, and as of that date is repealed.

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.