BILL NUMBER: AJR 29	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 29, 2010
	AMENDED IN SENATE  JUNE 16, 2010
	AMENDED IN ASSEMBLY  APRIL 22, 2010
	AMENDED IN ASSEMBLY  APRIL 19, 2010
	AMENDED IN ASSEMBLY  MARCH 15, 2010

INTRODUCED BY   Assembly Member Feuer
   (Principal coauthor: Assembly Member Portantino)
   (Coauthors: Assembly Members Ammiano, Block, Blumenfield,
Brownley, Fuentes, Huffman, Jones, Monning, Salas, Saldana, Skinner,
Torlakson, Adams, Arambula, Bass, Beall, Bradford, Buchanan, Charles
Calderon, Carter, Chesbro, Coto, Davis, De La Torre, De Leon, DeVore,
Emmerson, Eng, Evans, Fong, Galgiani, Hall, Harkey, Hayashi,
Hernandez, Hill, Jeffries, Lieu, Bonnie Lowenthal, Ma, Mendoza, Nava,
Nestande, Nielsen, John A. Perez, V. Manuel Perez, Ruskin, Solorio,
Swanson, Torres, Torrico, and Yamada)
   (Coauthors: Senators Alquist, Kehoe, and Leno)

                        JANUARY 21, 2010

   Relative to  domestic partners   same-sex
couples  tax equity.



	LEGISLATIVE COUNSEL'S DIGEST


   AJR 29, as amended, Feuer. Federal income tax:  domestic
partners   same-sex couples  .
   This measure would ask the Internal Revenue Service to 
reconsider a specified memorandum and  issue a new 
memorandum   ruling  with respect to the federal
income tax treatment  of property rights  of
registered domestic partners and same-sex  spouses 
 married couples  .
   Fiscal committee: no.



   WHEREAS, On May 28, 2010, the Internal Revenue Service (IRS)
issued a Chief Counsel advisory memorandum number 201021050 (CCA)
regarding federal tax treatment of California registered domestic
partners, which recognized changes in California law between 2005 and
2007 that expanded the property rights and obligations of registered
domestic partners and that characterized their income as community
property; and
   WHEREAS, As a result of the IRS CCA, registered domestic partners
in California must now combine their income and each report half of
it on his or her federal tax return; and
   WHEREAS, The IRS CCA did not address the federal tax treatment of
income of California same-sex married couples; and
   WHEREAS, California statutes (see Chapter 893 of the Statutes of
2001, Chapter 421 of the Statutes of 2003, and Chapter 802 of the
Statutes of 2006) and case law (In re Marriage Cases (2008) 43
Cal.4th 757; and Strauss v. Horton (2009) 46 Cal.4th 364) confirm
that registered domestic partners and married same-sex couples whose
marriages remain valid under California law have the same rights and
responsibilities under California law as heterosexual married
couples, including those rights and responsibilities related to
community property, and further, that California income tax reporting
is the same for registered domestic partners and married
individuals; and
   WHEREAS, Property, including income, acquired while domiciled in
California by registered domestic partners or married same-sex
couples whose marriages are still valid in California is community
property under California law; and
   WHEREAS, Federal tax law cited in the IRS CCA holds that the
characteristics of property ownership, including community property,
are determined by the states, and taxation of that property is
determined by the federal government; and
   WHEREAS, The Supreme Court of the United States has held that the
IRS must defer to state law determining property ownership, including
the existence of community property; and
   WHEREAS, Pursuant to a Presidential Memorandum Regarding
Preemption issued by the White House on May 20, 2009, preemption of
state law by executive departments and agencies should be undertaken
only with full consideration of the legitimate prerogatives of the
states and with a sufficient legal basis for preemption; now,
therefore, be it
   Resolved, BY THE ASSEMBLY AND SENATE OF THE STATE OF CALIFORNIA,
JOINTLY, That the Legislature of the State of California asks the IRS
to issue a Revenue Ruling that applies the legal analysis and
conclusions of the IRS CCA  and the California case law and
statutes cited above  to both California registered domestic
partners and same-sex married couples; and be it further
   Resolved, That the Legislature requests that, consistent with
established legal precedents, the IRS defer to California law on
treatment of property belonging to same-sex spouses, including the
existence of community property, so that for tax years beginning
after December 31, 2010, when filing separate federal income tax
returns, each same-sex spouse must include in his or her gross income
one-half of the community's income; and be it further
   Resolved, That for tax years beginning before  June 1,
2010   January 1, 2011  , the Legislature requests
that the Revenue Ruling referred to above further determine that
same-sex married couples may, but are not required to, amend their
returns to report income in accordance with the Revenue Ruling; and
be it further
   Resolved, That the Chief Clerk of the Assembly transmit copies of
this resolution to the President and Vice President of the United
States, to the Speaker of the House of Representatives, to the
Majority Leader of the Senate, to each Senator and Representative
from California in the Congress of the United States, to the
Secretary of the Treasury, to the Commissioner of the Internal
Revenue Service, and to the Internal Revenue Service Office of Chief
Counsel.