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AB-294 Income taxes: exclusion: military retirement benefits.(2001-2002)

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CALIFORNIA LEGISLATURE— 2001–2002 REGULAR SESSION

Assembly Bill
No. 294

Introduced  by  Assembly Member Zettel, Kehoe

February 16, 2001

An act to add Section 17140.6 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 294, as introduced, Zettel. Income taxes: exclusion: military retirement benefits.
The Personal Income Tax Law provides various exclusions from gross income in computing tax liability.
This bill would provide an exclusion from gross income for all survivor benefits or payments received under a federal Retired Serviceman’s Family Protection Plan, a Survivor Benefit Plan, and a Supplemental Survivor Benefit Plan.
This bill would take effect immediately as a tax levy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares the following:
Under the federal military retirement system there is a program known as the Survivor Benefit Program. The program is self-funded by military retirees, each of whom accepts reduced retired compensation for his or her military service in order to provide a pension to the retiree’s surviving spouse and minor children. The pension is payable only upon the death of the retiree. Taxing these survivor benefits amounts to double taxation.

SEC. 2.

 Section 17140.6 is added to the Revenue and Taxation Code, to read:

17140.6.
 Gross income shall not include all survivor benefits or payments received under a federal Retired Serviceman’s Family Protection Plan established pursuant to Subchapter I (commencing with Section 1431) of, a Survivor Benefit Plan established pursuant to Subchapter II (commencing with Section 1447) of, and a Supplemental Survivor Benefit Plan established pursuant to Subchapter III (commencing with Section 1456) of, Chapter 73 of Title 10 of the United States Code.

SEC. 3.

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