SB 1411: Personal income taxes: exclusion: uniformed services: retirement pay.

The Personal Income Tax Law imposes a tax on individual taxpayers measured by the taxpayers taxable income for the taxable year, but excludes certain items of income from the computation of tax, including an exclusion for combat-related special compensation.

This bill, for taxable years beginning on or after January 1, 2022, and before January 1, 2027, would exclude from gross income retirement pay received by a taxpayer from the federal government for service performed in the uniformed services, as defined.

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 state the intent of the Legislature to comply with the additional information requirement for any bill authorizing a tax expenditure.

This bill would take effect immediately as a tax levy.