AB 2329, as introduced, Melendez. 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, 2015, exclude from gross income, as provided, Combat-Related Special Compensation and Concurrent Retirement and Disability Pay payments 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 17132.9 is added to the Revenue and
2Taxation Code, to read:
(a) For each taxable year beginning on or after
2January 1, 2015, gross income shall not include Combat-Related
3Special Compensation or Concurrent Retirement and Disability
4Pay payments received by an eligible individual during the taxable
5year.
6(b) For purposes of this section:
7(1) “Combat-Related Special Compensation” means payments
8received by an eligible individual who performed service in a
9combat zone, as provided in Section 1413a of Title 10 of the United
10States Code.
11(2) “Concurrent Retirement and Disability Pay” means payments
12received by an eligible individual who is retired and entitled to
13receive
disability income, as provided in Section 1414 of Title 10
14of the United States Code.
15(3) “Eligible individual” means an active, reserve, or retired
16member of the United States military who served in active duty.
17(c) Nothing in this section shall be construed to create any
18inference with respect to the proper tax treatment of any
19Combat-Related Special Compensation or Concurrent Retirement
20and Disability Pay payments received before January 1, 2015.
This act provides for a tax levy within the meaning
22of Article IV of the Constitution and shall go into immediate effect.
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