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AB-2577 Personal income taxes: deductions: labor organization dues.(2017-2018)

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Date Published: 04/09/2018 09:00 PM
AB2577:v98#DOCUMENT

Amended  IN  Assembly  April 09, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill
No. 2577

Introduced by Assembly Member Gray

February 15, 2018

An act to amend Section 17072 of, and to add and repeal Section 17208 to, of, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 2577, as amended, Gray. Personal income taxes: deductions: labor organization dues.
The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in computing adjusted gross income under that law, including deductions for payments to individual retirement accounts, alimony payments, and interest on educational loans. That law also allows an itemized deduction for unreimbursed employee expenses that exceed 2% of adjusted gross income.
This bill, for each taxable year beginning on or after January 1, 2018, and before January 1, 2023, would allow as a deduction from gross income an amount equal to the amount paid or incurred for member dues paid by a taxpayer during the taxable year to specified labor organizations.
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 17072 of the Revenue and Taxation Code is amended to read:

17072.
 (a) Section 62 of the Internal Revenue Code, relating to adjusted gross income defined, shall apply, except as otherwise provided.
(b) Section 62(a)(2)(D) of the Internal Revenue Code, relating to certain expenses of elementary and secondary school teachers, shall not apply.
(c) Section 62(a)(21) of the Internal Revenue Code, relating to attorneys fees relating to awards to whistleblowers, shall not apply.
(d) Section For taxable years beginning on or after January 1, 2018, and before January 1, 2023, Section 62(a) of the Internal Revenue Code is modified to provide that the deduction under Section 17208 shall be allowed in determining adjusted gross income.

SEC. 2.

 Section 17208 is added to the Revenue and Taxation Code, to read:

17208.
 (a) For each taxable year beginning on or after January 1, 2018, and before January 1, 2023, there shall be allowed as a deduction an amount equal to the amount paid or incurred during the taxable year by a taxpayer for member dues to a labor organization that is exempt from taxes pursuant to Section 23701a.
(b) Any amount allowed as a deduction pursuant to this section shall not be allowed as an itemized deduction under Section 63 of the Internal Revenue Code, relating to taxable income defined, as applicable, for purposes of this part.
(c) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.

SEC. 3.

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