BILL NUMBER: AB 2004	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Knight

                        FEBRUARY 23, 2012

   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 2004, as introduced, Knight. Personal Income Tax Law:
exclusion: military veterans: combat zone compensation and disability
retirement payments.
   The Personal Income Tax Law provides various exclusions from gross
income in determining tax liability, including an exclusion for
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, 2010, exclude from gross income Combat-Related Special
Compensation (CRSC) and Concurrent Retirement and Disability Pay
(CRDP) payments, as defined, 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 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, 2013, gross income shall not include Combat-Related Special
Compensation (CRSC) or Concurrent Retirement and Disability Pay
(CRDP) payments received by an eligible individual during the taxable
year.
   (b) For purposes of this section:
   (1) "Combat-Related Special Compensation (CRSC)" means payments
received by an eligible individual who performed service in a combat
zone, as provided in Section 641 of Public Law 108-136.
   (2) "Concurrent Retirement and Disability Pay (CRDP)" means
payments received by an eligible individual who is retired and
entitled to receive disability income, as provided in Section 642 of
Public Law 108-375.
   (3) "Eligible individual" means an active, reserve, or retired
member of the United States military who served on active duty.
   (c) Nothing in this section shall be construed to create any
inference with respect to the proper tax treatment of any CRSC or
CRDP payments received before January 1, 2013.
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.