Personal income taxes: exclusion: servicemembers.

The Personal Income Tax Law imposes a tax on individual taxpayers measured by the taxpayer's taxable income for the taxable year, but excludes certain items of income from the computation of tax, including an exclusion for compensation for military or naval service performed by a nonresident while domiciled within the state. This bill would, for taxable years beginning on or after January 1, 2015, exclude from gross income, basic pay received by active duty servicemembers while on active duty in this state and any income received while hospitalized in this state from an injury received during active duty and for a 12-month period after being honorably discharged while in this state if that income is derived from his or her position as a servicemember. This bill would take effect immediately as a tax levy.