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AB-2394 Personal income taxes: exclusion: uniformed services: retirement pay.(2017-2018)

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Date Published: 04/24/2018 09:00 PM
AB2394:v97#DOCUMENT

Amended  IN  Assembly  April 24, 2018
Amended  IN  Assembly  March 19, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2394


Introduced by Assembly Member Brough
(Coauthors: Assembly Members Chen, Choi, Flora, Gallagher, Eduardo Garcia, Harper, Lackey, Mathis, and Voepel)

February 14, 2018


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 2394, as amended, Brough. Personal income taxes: exclusion: military uniformed services: retirement pay.
The Personal Income Tax Law imposes a tax on individual taxpayers measured by the taxpayer’s taxable income for the taxable year, but excludes certain items of income from the computation of tax, including an exclusion for combat-related special compensation.
This bill, for taxable years beginning on or after January 1, 2018, and before January 1, 2028, would exclude from gross income retirement pay received by a taxpayer from the federal government for military service performed in the Armed Forces of the United States, the reserve component of the Armed Forces of the United States, or the National Guard. service performed in the uniformed services, as defined.
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.
 Gross (a) For taxable years beginning on or after January 1, 2018, and before January 1, 2028, gross income shall not include retirement pay received by a taxpayer from the federal government for military service performed in the Armed Forces of the United States, the reserve component of the Armed Forces of the United States, or the National Guard. service in the uniformed services.
(b) For purposes of this section, “uniformed services” means Armed Forces of the United States of America, the Army National Guard and the Air National Guard when engaged in active duty for training, inactive duty training, or full-time National Guard duty, and the commissioned corps of the United States Public Health Service.

SEC. 2.

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