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AB-2004 Personal Income Tax Law: exclusion: military veterans: combat zone compensation and disability retirement payments.(2011-2012)

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Amended  IN  Assembly  May 16, 2012

CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill
No. 2004


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 amended, 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, as provided, 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 make these provisions inoperative on January 1, 2018.
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.

 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 1413a of Title 10 of the United States Code.
(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 1414 of Title 10 of the United States Code.
(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.
(d) The total amount of Combat-Related Special Compensation (CRSC) and Concurrent Retirement and Disability Pay (CRDP) that an eligible individual may exclude from gross income pursuant to subdivision (a) shall not exceed sixty thousand dollars ($60,000) per each taxable year.
(e) This section shall become inoperative on January 1, 2018, and, as of that date is repealed.

SEC. 2.

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