Amended  IN  Senate  April 05, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 289

Introduced by Senator McGuire

February 09, 2017

An act to add Section 17131.7 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


SB 289, as amended, McGuire. Personal income taxes: gross income exclusion: reservation-sourced income.
The Personal Income Tax Law, in conformity with federal income tax law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income.
This bill, for taxable years beginning on or after January 1, 2017, would exclude from gross income the earned income of an eligible individual taxpayer that is derived from, or attributable to, from sources within Indian country in this state. The bill would define specified terms for the purposes of this exclusion.
This bill would take effect immediately as a tax levy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 17131.7 is added to the Revenue and Taxation Code, to read:

17131.7.
 (a) For taxable years beginning on or after January 1, 2017, gross income shall not include earned income of an eligible individual. taxpayer.
(b) For purposes of this section, the following definitions shall apply:
(1) “Earned income” has the same meaning as provided in Section 32(c)(2) of the Internal Revenue Code, relating to earned income, as modified to substitute the phrase “but only if such amounts would have been otherwise properly includable in gross income for the taxable year without regard to subdivision (a)” (a) and only to the extent that the earned income is derived from sources within Indian country in this state” for the phrase “but only if such amounts are includable in gross income for the taxable year,” but only to the extent that the earned income is derived from, or attributable to, sources within Indian country in this state. year.”
(2) “Eligible person” taxpayer” means an individual who is a member of a federally recognized Indian tribe in this state who resides within Indian country in this state.
(3) “Indian country” has the same meaning as provided in Section 30101.7.

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.