Amended in Assembly May 12, 2016

Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1791


Introduced by Assembly Member Lopez

February 4, 2016


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: 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 onbegin delete orend deletebegin insert andend insert after January 1, 2016,begin insert and before January 1, 2019,end insert 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.begin insert The bill would make these provisions operative on the effective date of any budget measure specifically appropriating funds to the Franchise Tax Board for its costs of administering these provisions.end insert

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:

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SECTION 1.  

Section 17132.9 is added to the Revenue and
2Taxation Code
, to read:

3

17132.9.  

(a) For each taxable year beginning onbegin delete orend deletebegin insert andend insert after
4January 1, 2016,begin insert and before January 1, 2019,end insert gross income shall
5not include retirement pay received by a taxpayer from the federal
6government for military service performed in the Armed Forces
7of the United States, the reserve component of the Armed Forces
8of the United States, or the National Guard.

9(b) For each taxable year beginning onbegin delete orend deletebegin insert andend insert after January 1,
102016,begin insert and before January 1, 2019,end insert gross income shall not include
11survivor benefits received by a taxpayer from the federal
12government pursuant to Chapter 73 of Title 10 of the United States
13Code.

begin insert

14
(c) This section shall become operative on the effective date of
15any budget measure specifically appropriating funds to the
16Franchise Tax Board for its costs of administering this section.

end insert
17

SEC. 2.  

This act provides for a tax levy within the meaning of
18Article IV of thebegin insert Californiaend insert Constitution and shall go into
19immediate effect.



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