Bill Text: CA AB1275 | 2015-2016 | Regular Session | Amended

---

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

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Failed) 2016-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1275 Detail]

Download: California-2015-AB1275-Amended.html

---

BILL NUMBER: AB 1275	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 22, 2015

INTRODUCED BY   Assembly Member Gray
    (   Coauthors:   Assembly Members 
 Brough   and Dababneh   ) 

                        FEBRUARY 27, 2015

   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 1275, as amended, Gray. 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 would, for taxable years beginning on or after January
1, 2015, exclude from gross income retirement pay received by a 
qualified  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  beneficiary
of a qualified  taxpayer from the federal government, as
specified.  The bill would define "qualified taxpayer" for those
purposes as a taxpayer who is a Purple Heart or Medal of Honor
recipient. 
   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 after January
1, 2015, gross income shall not include retirement pay received by a
 qualified  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 after January 1, 2015,
gross income shall not include survivor benefits received by a 
beneficiary of a qualified  taxpayer from the federal government
pursuant to Chapter 73 of Title 10 of the United States Code. 
   (c) "Qualified taxpayer" means a taxpayer who is a Purple Heart or
Medal of Honor recipient. 
  SEC. 2.   This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.