BILL NUMBER: AB 2329	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Melendez

                        FEBRUARY 21, 2014

   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 2329, as introduced, Melendez. Personal Income Tax Law:
exclusion: military veterans: combat zone compensation and disability
retirement payments.
   The Personal Income Tax Law provides various exclusions from gross
income in determining tax liability, including an exclusion for
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, as provided, Combat-Related
Special Compensation and Concurrent Retirement and Disability Pay
payments received by an eligible individual, as defined.
    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 Combat-Related Special
Compensation or Concurrent Retirement and Disability Pay payments
received by an eligible individual during the taxable year.
   (b) For purposes of this section:
   (1) "Combat-Related Special Compensation" means payments received
by an eligible individual who performed service in a combat zone, as
provided in Section 1413a of Title 10 of the United States Code.
   (2) "Concurrent Retirement and Disability Pay" means payments
received by an eligible individual who is retired and entitled to
receive disability income, as provided in Section 1414 of Title 10 of
the United States Code.
   (3) "Eligible individual" means an active, reserve, or retired
member of the United States military who served in active duty.
   (c) Nothing in this section shall be construed to create any
inference with respect to the proper tax treatment of any
Combat-Related Special Compensation or Concurrent Retirement and
Disability Pay payments received before January 1, 2015.
  SEC. 2.   This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.