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