BILL NUMBER: AB 1791	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 18, 2016

INTRODUCED BY   Assembly Member Lopez

                        FEBRUARY 4, 2016

    An act to amend Section 17010 of the Revenue and Taxation
Code, relating to taxation.   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 1791, as amended, Lopez.  Personal income taxes.
  Personal income taxes: exclusion: military retirement
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, 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.  
   This bill would take effect immediately as a tax levy. 

   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."  
   This bill would make a nonsubstantive change to that definition
provision. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  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, 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. 
   SEC. 2.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  
  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.