Amended in Assembly May 15, 2014

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 begin insert and repeal end insert 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: concurrent retirement and disability 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 would, for taxable years beginning on or after January 1, 2015, begin insert and before January 1, 2020, end insert exclude from gross income, as provided, begin delete and end delete Concurrent Retirement and Disability Pay payments received by an eligible individual, as defined. begin insert The bill would repeal these provisions on December 1, 2020. 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:

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, begin insert and before January 1, 2020, end insert gross income shall
not include Concurrent Retirement and Disability Pay payments
received by an eligible individual during the taxable year.

(b) For purposes of this section:

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

(2) “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 Concurrent
Retirement and Disability Pay payments received before January
1, 2015.

begin insert

(d) This section shall remain in effect only until December 1,
2020, and as of that date is repealed.

end insert

SEC. 2.  

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