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AB-2590 Personal income taxes: exclusion: servicemembers.(2017-2018)

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Date Published: 04/09/2018 09:00 PM
AB2590:v98#DOCUMENT

Amended  IN  Assembly  April 09, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2590


Introduced by Assembly Member Chen

February 15, 2018


An act to add and repeal Section 17140.7 to of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 2590, as amended, Chen. Personal income taxes: exclusion: servicemembers.
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 compensation for military or naval service performed by a nonresident while domiciled within the state.
This bill would bill, for taxable years beginning on or after January 1, 2018, and before January 1, 2028, would exclude from gross income, income basic pay received by a servicemember on active duty in the United States Armed Forces, in the reserve component of the United States Armed Forces, or in the National Guard, derived from his or her position as a servicemember while he or she is on military orders for 90 or more consecutive days.
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 17140.7 is added to the Revenue and Taxation Code, to read:

17140.7.
 Gross (a) For taxable years beginning on or after January 1, 2018, and before January 1, 2028, gross income does not include any basic pay received by a servicemember on active duty in the United States Armed Forces, in the reserve component of the United States Armed Forces, or in the National Guard, derived from his or her position as a servicemember while he or she is on military orders for 90 or more consecutive days.
(b) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.

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.