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SB-14 National Guard: bonuses: tax reimbursement.(2017-2018)

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Date Published: 12/05/2016 08:52 PM
SB14:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 14


Introduced by Senator Gaines

December 05, 2016


An act to add Article 9 (commencing with Section 999.90) to Chapter 6 of Division 4 of the Military and Veterans Code, and to add Section 17131.7 to the Revenue and Taxation Code, relating to veterans benefits, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.


LEGISLATIVE COUNSEL'S DIGEST


SB 14, as introduced, Gaines. National Guard: bonuses: tax reimbursement.
Existing law provides for various benefits for veterans, including, but not limited to, educational, housing, and financial assistance. The Personal Income Tax Law imposes taxes on an individual tax payer measured by the taxpayer’s taxable income for the taxable year, as provided.
This bill would create a grant program to repay members of the National Guard who paid taxes on an enlistment bonus awarded on or after January 1, 2004, and before January 1, 2011, that the member was required to repay. The bill would provide a grant in the amount equal to the taxes that the member paid on that bonus. This bill would require the Franchise Tax Board to create an application for this grant program, and would appropriate, from the General Fund to the Franchise Tax Board, the amount necessary to fund the grants and the administration of this grant program and the exclusion described below.
The Personal Income Tax Law provides for various exclusions from gross income, including state income tax refunds and rewards received from a government authorized crime hotline.
This bill would exclude from gross income the amount granted to the member of the National Guard that is equal to the amount of taxes paid on an enlistment bonus that was repaid.
This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Article 9 (commencing with Section 999.90) is added to Chapter 6 of Division 4 of the Military and Veterans Code, to read:
Article  9. National Guard Enlistment Bonuses

999.90.
 (a) The Franchise Tax Board shall provide a grant to a member of the National Guard who paid taxes under Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code on an enlistment bonus awarded on or after January 1, 2004, and before January 1, 2011, that the member was required by the Defense Finance and Accounting Service to repay and did repay.
(b) The grant shall be in the amount equal to the amount of taxes paid under Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code on the bonus described in subdivision (a).
(c) To qualify for a grant pursuant to subdivision (a), a member of the National Guard shall apply for this grant with the Franchise Tax Board and provide a tax return from the taxable year in which he or she paid taxes on the enlistment bonus with his or her application.
(d) The Franchise Tax Board shall create an application for this grant program.
(e) The amount necessary to fund the grants described in subdivision (a) and to reimburse the Franchise Tax Board for the administration of this grant program and the exclusion allowed under Section 17131.7 of the Revenue and Taxation Code shall be appropriated from the General Fund to the Franchise Tax Board for purposes of providing grants to members of the National Guard that paid taxes under Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code on enlistment bonuses that were required to be repaid.

SEC. 2.

 Section 17131.7 is added to the Revenue and Taxation Code, to read:

17131.7.
 Gross income shall not include a grant to a member of the National Guard pursuant to Section 999.90 of the Military and Veterans Code.

SEC. 3.

 Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any standard criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board to implement the purposes of this measure.

SEC. 4.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to ensure that members of the National Guard are paid, as soon as possible, an amount equal to the amount of income taxes that they have paid on bonuses were required to be repaid, it is necessary that this act take effect immediately.