AB 505, as introduced, Melendez. Personal Income Tax Law: exclusion: 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, 2016, exclude from gross income, as provided, 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 17132.9 is added to the Revenue and
2Taxation Code, to read:
(a) For each taxable year beginning on or after
2January 1, 2016, gross income shall not include concurrent
3retirement and disability pay payments received by an eligible
4individual during the taxable year.
5(b) For purposes of this section:
6(1) “Concurrent retirement and disability pay” means payments
7received, as provided in Section 1414 of Title 10 of the United
8States Code by an eligible individual.
9(2) “Eligible individual” means an active, reserve, or retired
10member of the United States military who served in active duty.
11(3) Nothing in this section shall be construed to create any
12inference with respect to the proper tax treatment of any concurrent
13retirement and disability pay payments received before January 1,
142016.
This act provides for a tax levy within the meaning of
16Article IV of the Constitution and shall go into immediate effect.
O
99