Personal Income Tax Law: exclusions: military retirement pay: survivor benefit pay.
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Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill modifies California’s tax laws to provide greater financial relief to military families. It increases the income limits for federal retirement pay and survivor benefit payments received by qualified taxpayers from $20,000 to $80,000, adjusted for inflation, beginning in 2025. The changes will remain in effect until December 1, 2037. The bill also includes provisions for tracking inflation adjustments and requires specific reporting for new tax expenditures.
Key provisions
- Increases the income exclusion for federal military retirement pay from $20,000 to $80,000.
- Increases the income exclusion for survivor benefit payments from the DoD from $20,000 to $80,000.
- Establishes inflation adjustments to the income limits, starting in 2027, using the California Consumer Price Index.
- Extends the income exclusions until December 1, 2037.
- Requires the Franchise Tax Board to recompute income limits annually to account for inflation.
- Includes requirements for reporting on the goals and performance indicators of tax expenditures.
- Specifies definitions for ‘qualified taxpayer’ and ‘uniformed services’.
- The bill takes effect immediately as a tax levy.
Who is affected
- Military personnel and their families
- Veterans and surviving spouses
- Taxpayers receiving federal retirement pay
- Taxpayers receiving survivor benefit payments from the Department of Defense
Bill text
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Sponsors
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6 on record
Primary sponsor
Cosponsors
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