Personal income taxes: exclusion: military retirement pay.

The Personal Income Tax Law provides various exclusions from gross income in determining tax liability, including an exclusion for combat-related special compensation and death benefit payments received by a surviving spouse or other beneficiary designated by a military veteran, as prescribed, who dies or is killed in the performance of duty, as provided. This bill would, for taxable years beginning on or after January 1, 2015, exclude from gross income retirement pay received by a qualified taxpayer from the federal government for military service performed in the Armed Forces of the United States, the reserve component of the Armed Forces of the United States, or the National Guard, and survivor benefits received by a beneficiary of a qualified taxpayer from the federal government, as specified. The bill would define "qualified taxpayer" for those purposes as a taxpayer who is a Purple Heart or Medal of Honor recipient. This bill would take effect immediately as a tax levy.