CA SB 1

Title: Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act.
Author: Kelly Seyarto

Summary
SB 1, as amended, Seyarto. Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act. The Personal Income Tax Law, in conformity with federal income tax laws, defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income, including an exclusion for combat-related special compensation.This bill, for taxable years beginning on or after January 1, 2025, and before January 1, 2035, would exclude from gross income retirement pay received by a qualified taxpayer, as defined, during the taxable year, not to exceed $20,000, from the federal government for service performed in the uniformed services, as defined. The bill, for taxable years beginning on or after January 1, 2025, and before January 1, 2035, would also exclude from gross income annuity payments received by a qualified taxpayer, as defined, during the taxable year, not to exceed $20,000, pursuant to a United States Department of Defense Survivor Benefit Plan. The bill would make related findings and declarations.Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.This bill also would include additional information required for any bill authorizing a new tax expenditure.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.This bill would take effect immediately as a tax levy.

Status
May 23 hearing: Held in committee and under submission.

Bill Documents
CA SB 1 - 02/20/25 - Amended Senate
02/20/25 - CA SB 1 (02/20/25 - Amended Senate)