Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1791

Introduced by Assembly Member Lopez

February 4, 2016

begin delete An act to amend Section 17010 of the Revenue and Taxation Code, relating to taxation. end delete begin insert An act to add Section 17132.9 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1791, as amended, Lopez. begin delete Personal income taxes. end delete begin insert Personal income taxes: exclusion: military retirement pay. end insert

begin insert

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.

end insert begin insert

This bill, for taxable years beginning on or after January 1, 2016, would exclude from gross income retirement pay received by a taxpayer from the federal government for military service performed in the Armed Forces of the United States, the reserve component of the Armed Forces of the United States, or the National Guard, and survivor benefits received by a taxpayer from the federal government, as specified.

end insert begin insert

This bill would take effect immediately as a tax levy.

end insert begin delete

The Personal Income Tax Law imposes taxes on income and provides definitions of specified terms for purposes of that law, including a definition for “taxable year.”

end delete begin delete

This bill would make a nonsubstantive change to that definition provision.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

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

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begin insert SECTION 1. end insert   

end insert

begin insert Section 17132.9 is added to the end insert begin insert Revenue and
Taxation Code end insert begin insert , to read: end insert

begin insert

begin insert 17132.9. end insert   

(a) For each taxable year beginning on or after
January 1, 2016, gross income shall not include retirement pay
received by a taxpayer from the federal government for military
service performed in the Armed Forces of the United States, the
reserve component of the Armed Forces of the United States, or
the National Guard.

(b) For each taxable year beginning on or after January 1,
2016, gross income shall not include survivor benefits received
by a taxpayer from the federal government pursuant to Chapter
73 of Title 10 of the United States Code.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert begin insert

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

end insert

begin delete

SECTION 1.  

Section 17010 of the Revenue and Taxation Code
is amended to read:

17010.  

“Taxable year” means either the calendar year or the
fiscal year upon the basis of which the taxable income is computed
under this part. If no fiscal year has been established, “taxable
year” means the calendar year.

“Taxable year” means, in the case of a return made for a
fractional part of a year under this part or under regulations
prescribed by the Franchise Tax Board, the period for which the
return is made.

end delete