BILL NUMBER: AB 2329	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 15, 2014
	AMENDED IN ASSEMBLY  APRIL 10, 2014

INTRODUCED BY   Assembly Member Melendez

                        FEBRUARY 21, 2014

   An act to add  and repeal  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 amended, Melendez. Personal Income Tax Law: exclusion:
military veterans: concurrent retirement and disability 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 would, for taxable years beginning on or after January
1, 2015,  and before January 1, 2020,  exclude from gross
income, as provided,  and  Concurrent Retirement and
Disability Pay payments received by an eligible individual, as
defined.  The bill would repeal these provisions on December 1,
2020. 
    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,  and before January 1, 2020,  gross income shall
not include Concurrent Retirement and Disability Pay payments
received by an eligible individual during the taxable year.
   (b) For purposes of this section:
   (1) "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.
  Code by an eligible individual. 
   (2) "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 Concurrent
Retirement and Disability Pay payments received before January 1,
2015. 
   (d) This section shall remain in effect only until December 1,
2020, and as of that date is repealed. 
  SEC. 2.   This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.