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Measure AB 53
Authors Ramos   McKinnor   Pacheco   Patel  
Principle Coauthors: Jeff Gonzalez   Cervantes  
Coauthors: Addis   Alanis   Arambula   Berman   Carrillo   Davies   Dixon   Flora   Garcia   Mark González   Hadwick   Macedo   Ortega   Patterson   Quirk-Silva   Michelle Rodriguez   Rogers   Schiavo   Stefani   Ta   Tangipa   Wallis   Ward   Alvarado-Gil   Choi   Grove   Limón   McNerney   Ochoa Bogh   Rubio   Valladares   Weber Pierson  
Subject Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act.
Relating To relating to taxation, to take effect immediately, tax levy.
Title An act to add and repeal Sections 17132.9 and 17132.10 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
Last Action Dt 2025-02-24
State Amended Assembly
Status In Committee Process
Active? Y
Vote Required Majority
Appropriation No
Fiscal Committee Yes
Local Program No
Substantive Changes None
Urgency Yes
Tax Levy Yes
Leginfo Link Bill
Actions
2025-06-11     Referred to Coms. on REV. & TAX. and M. & V.A.
2025-05-29     Read third time. Passed. Ordered to the Senate. (Ayes 70. Noes 0. Page 1776.)
2025-05-29     In Senate. Read first time. To Com. on RLS. for assignment.
2025-05-27     Read second time. Ordered to third reading.
2025-05-23     From committee: Do pass. (Ayes 14. Noes 0.) (May 23).
2025-05-21     In committee: Set, first hearing. Referred to APPR. suspense file.
2025-05-21     Joint Rule 62(a), file notice suspended. (Page 1627.)
2025-05-14     In committee: Hearing postponed by committee.
2025-05-06     From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (May 5). Re-referred to Com. on APPR.
2025-05-06     Coauthors revised.
2025-03-17     In committee: Set, second hearing. Referred to REV. & TAX. suspense file.
2025-03-10     In committee: Set, first hearing. Hearing canceled at the request of author.
2025-02-25     Re-referred to Com. on REV. & TAX.
2025-02-24     From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2025-02-03     Referred to Com. on REV. & TAX.
2024-12-03     From printer. May be heard in committee January 2.
2024-12-02     Read first time. To print.
Keywords
Tags
Versions
Amended Assembly     2025-02-24
Introduced     2024-12-02
Last Version Text 
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		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Members Ramos, McKinnor, Pacheco, and Patel</ns0:AuthorText>
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		<ns0:AuthorText authorType="COAUTHOR_OPPOSITE">(Coauthors: Senators Alvarado-Gil, Choi, Grove, Limón, McNerney, Ochoa Bogh, Rubio, Valladares, and Weber Pierson)</ns0:AuthorText>
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				<ns0:Name>Dixon</ns0:Name>
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				<ns0:Name>Mark González</ns0:Name>
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				<ns0:Name>Michelle Rodriguez</ns0:Name>
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				<ns0:Name>Rogers</ns0:Name>
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				<ns0:Contribution>COAUTHOR</ns0:Contribution>
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				<ns0:Name>Ochoa Bogh</ns0:Name>
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				<ns0:Name>Rubio</ns0:Name>
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				<ns0:Name>Valladares</ns0:Name>
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				<ns0:Name>Weber Pierson</ns0:Name>
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		<ns0:Title> An act to add and repeal Sections 17132.9 and 17132.10 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.</ns0:Title>
		<ns0:RelatingClause>taxation, to take effect immediately, tax levy</ns0:RelatingClause>
		<ns0:GeneralSubject>
			<ns0:Subject>Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act.</ns0:Subject>
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			<html:p>The Personal Income Tax Law, in modified conformity with federal income tax law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, including an exclusion for combat-related special compensation.  </html:p>
			<html:p>This bill, for taxable years beginning on or after January 1,
		2025, and before January 1, 2030, 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, 2030, would also exclude from gross income annuity payments received during the taxable year, not to exceed $20,000, by a qualified taxpayer, as defined, pursuant to a United States
		Department of Defense Survivor Benefit Plan. The bill would make related findings and declarations.</html:p>
			<html:p>Existing law requires any bill authorizing a new tax expenditure to contain specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements, as provided.</html:p>
			<html:p>This bill also would include the information required for any bill authorizing a new tax expenditure.</html:p>
			<html:p>This bill would take effect immediately as a tax levy.</html:p>
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				<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
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		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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			<ns0:Num>SECTION 1.</ns0:Num>
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				<html:p>This measure shall be known, and may be cited, as the Military Services Retirement and Surviving Spouse Benefit Payment Act.</html:p>
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				<html:p>The Legislature finds and declares all of the following:</html:p>
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					(a)
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					Servicemembers are eligible to retire from the military after 20 years of service. These retirees devoted the prime years of their life to defending the freedom of all Americans.
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					(b)
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					To preserve the current policy of an all-volunteer force while still maintaining critical skills and readiness requires the retention of qualified military personnel, both enlisted and officers. This retention of military professionals also saves the costs to the taxpayer associated with training replacement personnel in essential skills.
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					(c)
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					Retired members of the
		  nation’s two nonarmed uniformed services, which consist of the commissioned corps of the United States Public Health Service and the National Oceanic and Atmospheric Administration Commissioned Officer Corps, also provide valuable service to the nation’s health and environmental safety.
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					(d)
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					Providing a state income tax exclusion to retirees of the uniformed services not only signifies the gratitude of Californians for these men and women who chose to serve our country, it also benefits the state and local economies by helping to retain skilled and motivated individuals in California.
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				<html:p>
					(e)
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					The number one issue for employers in California is attracting a qualified workforce. Approximately 60,000 high-tech jobs are unfilled. Uniformed service retirees are highly skilled, often in areas requiring technical and management expertise. These men and women often continue to be valuable
		  assets to our schools, local charities, and nonprofit organizations.
				</html:p>
				<html:p>
					(f)
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					Substantial new federal funds are infused into the state and local economies not only from retirement pay, but also from the full taxation of their second careers. These retirees may also qualify for federal veterans’ benefits, which further bring new moneys into the state.
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				<html:p>
					(g)
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					The United States Department of Defense’s Survivor Benefit Plan allows a retiree to ensure, after death, a continuous lifetime annuity for their dependents. The maximum annuity for a spouse is based on 55 percent of the member’s retirement pay. Eligible children may also be beneficiaries. State income taxation of these funds, which are critical to the economic well-being of those who have suffered the loss of a husband, wife, father, or mother, can place the surviving family members in risk of falling into the state and local safety
		  nets.
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				Section 17132.9 is added to the 
				<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
				, to read:
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								(a)
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								For taxable years beginning on or after January 1, 2025, and before January 1, 2030, gross income shall not include retirement pay received during the taxable year, not to exceed twenty thousand dollars ($20,000), by a
				  qualified taxpayer from the federal government for service in the uniformed services.
							</html:p>
							<html:p>
								(b)
								<html:span class="EnSpace"/>
								For purposes of this section, the following definitions apply:
							</html:p>
							<html:p>
								(1)
								<html:span class="EnSpace"/>
								“Qualified taxpayer” means a taxpayer that satisfies either of the following:
							</html:p>
							<html:p>
								(A)
								<html:span class="EnSpace"/>
								In the case of a surviving spouse or spouses filing a joint return, adjusted gross income does not exceed two hundred fifty thousand dollars ($250,000).
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								In the case of any other individual, adjusted gross income does not exceed one hundred twenty-five thousand dollars ($125,000). 
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								“Uniformed services” means the Armed Forces of the United States, the Army National Guard and the Air National Guard when engaged in active duty for training, inactive duty training, or full-time National Guard duty, the commissioned corps of the United States Public Health Service, and the National Oceanic and Atmospheric Administration Commissioned Officer Corps.
							</html:p>
							<html:p>
								(c)
								<html:span class="EnSpace"/>
								This section shall remain in effect only until December 1, 2030, and as of that date is repealed.
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			<ns0:Num>SEC. 4.</ns0:Num>
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				Section 17132.10 is added to the 
				<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
				, to read:
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				<ns0:LawSection id="id_39B031E6-135C-4E77-A76B-3B76CA1FFA3E">
					<ns0:Num>17132.10.</ns0:Num>
					<ns0:LawSectionVersion id="id_4C65E966-09FC-400F-9A56-CA17E76D6247">
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							<html:p>
								(a)
								<html:span class="EnSpace"/>
								For taxable years beginning on or after January 1, 2025, and before January 1, 2030, gross income shall not include annuity payments received by a qualified taxpayer during the taxable year, not to exceed twenty thousand dollars ($20,000), pursuant to a United States Department of Defense Survivor Benefit
				  Plan.
							</html:p>
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								(b)
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								For purposes of this section, the following definitions apply:
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							<html:p>
								(1)
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								“Qualified taxpayer” means the surviving spouse or other named beneficiary of a plan who satisfies either of the following:
							</html:p>
							<html:p>
								(A)
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								In the case of a surviving spouse or spouses filing a joint return, adjusted gross income does not exceed two hundred fifty thousand dollars ($250,000). 
							</html:p>
							<html:p>
								(B)
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								In the case of any other individual, adjusted gross income does not
				  exceed one hundred twenty-five thousand dollars ($125,000). 
							</html:p>
							<html:p>
								(2)
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								“United States Department of Defense Survivor Benefit Plan” or “plan” means a survivor benefit plan established pursuant to Sections 1447 to 1455, inclusive, of Title 10 of the United States Code.
							</html:p>
							<html:p>
								(c)
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								This section shall remain in effect only until December 1, 2030, and as of that date is repealed.
							</html:p>
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		<ns0:BillSection id="id_7881E72B-1451-4AFD-BED5-E960320411C1">
			<ns0:Num>SEC. 5.</ns0:Num>
			<ns0:Content>
				<html:p>For purposes of complying with the requirements of Section 41 of the Revenue and Taxation Code, with respect to the exclusions allowed by Sections 17132.9 and 17132.10 of the Revenue and Taxation Code, as added by this act, hereafter known as “the exclusions,” the Legislature finds and declares the following:</html:p>
				<html:p>
					(a)
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					The specific goals, purposes, and objectives of the exclusions are as follows:
				</html:p>
				<html:p>
					(1)
					<html:span class="EnSpace"/>
					To recognize the loss and sacrifice of our military families and give them the support that our community owes them. 
				</html:p>
				<html:p>
					(2)
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					To provide some financial relief to families that have experienced not only the loss of a loved one, but also often the loss of the sole income of the family, and who are now trying to make ends meet on a portion of that original income. 
				</html:p>
				<html:p>
					(b)
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					There is no available data to collect or report with respect to the exclusions added by this act. 
				</html:p>
				<html:p>
					(c)
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					This section shall remain in effect only until December 1, 2030, and as of that date is repealed. 
				</html:p>
			</ns0:Content>
		</ns0:BillSection>
		<ns0:BillSection id="id_C2EB6733-74CA-4BBD-A05F-8853F9177603">
			<ns0:Num>SEC. 6.</ns0:Num>
			<ns0:Content>
				<html:p>This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.</html:p>
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		<ns0:Correction>
	 REVISIONS:</ns0:Correction>
		<ns0:Correction>
	 Headings—Lines 1, 2, 4, 5, 6, and 8.</ns0:Correction>
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Last Version Text Digest The Personal Income Tax Law, in modified conformity with federal income tax law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, including an exclusion for combat-related special compensation. This bill, for taxable years beginning on or after January 1, 2025, and before January 1, 2030, 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, 2030, would also exclude from gross income annuity payments received during the taxable year, not to exceed $20,000, by a qualified taxpayer, as defined, 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 specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements, as provided. This bill also would include the information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.