Amended in Assembly April 10, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2329

Introduced by Assembly Member Melendez

February 21, 2014

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 2329, as amended, Melendez. Personal Income Tax Law: exclusion: military veterans: begin delete combat zone compensation and disability retirement payments. end delete begin insert concurrent retirement and disability pay. end insert

The Personal Income Tax Law provides various exclusions from gross income in determining tax liability, including an exclusion for begin insert combat-related special compensation and end insert 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, begin delete Combat-Related Special Compensation end delete 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 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, 2015, gross income shall not include begin delete Combat-Related
Special Compensation or end delete Concurrent Retirement and Disability
Pay payments received by an eligible individual during the taxable
year.

(b) For purposes of this section:

begin delete

(1) “Combat-Related Special Compensation” means payments
received by an eligible individual who performed service in a
combat zone, as provided in Section 1413a of Title 10 of the United
States Code.

end delete begin delete

(2)

end delete

begin insert (1) end insert  “Concurrent Retirement and Disability Pay” means payments
received by an eligible individual who is retired and entitled to
receive disability income, as provided in Section 1414 of Title 10
of the United States Code.

begin delete

(3)

end delete

begin insert (2) end insert  “Eligible individual” means an active, reserve, or retired
member of the United States military who served in active duty.

(c) Nothing in this section shall be construed to create any
inference with respect to the proper tax treatment of
any begin delete Combat-Related Special Compensation or end delete Concurrent
Retirement and Disability Pay payments received before January
1, 2015.

SEC. 2.  

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