Amended in Assembly April 2, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 362

Introduced by Assembly Member Ting

February 14, 2013

An actbegin insert to add Section 17141 to the Revenue and Taxation Code,end insert relating to taxationbegin insert, to take effect immediately, tax levyend insert.


AB 362, as amended, Ting. Personal income taxes:begin delete exemption:end deletebegin insert exclusion:end insert health insurance.

The Personal Income Tax Lawbegin delete imposes a tax on individual taxpayers measured by the amount of the taxpayer’s taxable income for the taxable year, but exempts certain items of income from that taxend deletebegin insert imposes taxes based upon gross income, and defines gross income as all income from whatever source derived, unless specifically excludedend insert.

This bill wouldbegin delete state the intent of the Legislature to enact legislation that would provide an exemption from personal income taxes for qualified income, as specified, paid to an individual by his or her employerend deletebegin insert also exclude from gross income any amount received by an employee from an employer to reimburse specified federal income taxes paid by the employeeend insert.

begin insert

This bill would take effect immediately as a tax levy.

end insert

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

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

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 17141 is added to the end insertbegin insertRevenue and
2Taxation Code
end insert
begin insert, to read:end insert

begin insert

begin insert17141.end insert  

Gross income shall not include any amount received
4by an employee from an employer to reimburse federal income
5taxes paid by the employee because, for federal income tax
6purposes, the same-sex spouse or domestic partner of the employee
7is not considered the spouse of the employee under Section 105(a)
8or Section 106(a) of the Internal Revenue Code, including any
9reimbursement of federal income taxes paid with respect to those

end insert
11begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

This act provides for a tax levy within the meaning of
12Article IV of the Constitution and shall go into immediate effect.

end insert
begin delete


It is the intent of the Legislature to enact
14legislation that would provide an exemption from personal income
15taxes for qualified income paid to an individual by his or her
16employer. “Qualified income” means income paid to offset the
17cost of federal taxes paid by an individual for employer-sponsored
18health insurance for a same-sex domestic partner or same-sex
19spouse and the dependents of the same-sex domestic partner or
20same-sex spouse.

end delete