Amended in Assembly May 21, 2013

Amended in Assembly April 2, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 362

Introduced by Assembly Member Ting

begin insert

(Coauthor: Assembly Member Gordon)

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February 14, 2013

An act to add begin insert and repeal end insert Section 17141 begin delete to end delete begin insert of end insert the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL’S DIGEST

AB 362, as amended, Ting. Personal income taxes: exclusion: health insurance.

The Personal Income Tax Law imposes taxes based upon gross income, and defines gross income as all income from whatever source derived, unless specifically excluded.

This bill begin insert , until January 1, 2019, end insert would also exclude from gross income any amount received by an employee from an employer to begin delete reimburse end delete begin insert compensate for end insert specified federal income begin delete taxes paid end delete begin insert tax liability incurred end insert by the employee.

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 17141 is added to the Revenue and
Taxation Code, to read:

17141.  

begin insert (a) end insert begin insert   end insert Gross income shall not include any amount
received by an employee from an employer to begin delete reimburse end delete
begin insert compensate for the additional end insert federal income begin delete taxes paid end delete begin insert tax
liability incurred end insert by the employee because, for federal income tax
purposes, the same-sex spouse or domestic partner of the employee
is not considered the spouse of the employee under Section 105(a)
or Section 106(a) of the Internal Revenue Code, including any
begin delete reimbursement of end delete begin insert compensation for the additional end insert federal income
begin delete taxes paid end delete begin insert tax liability incurred end insert with respect to those amounts.

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(b) This section shall remain in effect only until January 1, 2019,
and as of that date is repealed.

end insert

SEC. 2.  

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