Plain English Breakdown
The official text excerpt contains conflicting or alternative dates (2027/2032 vs. 2028/2033) likely due to amendments; the final effective years cannot be confirmed from this snippet alone.
Excluding Reparations Payments from State Income Tax
AB-2186 excludes defined reparations benefits or payments from a taxpayer's gross income for taxable years beginning on or after January 1, 2027 (or 2028) and before January 1, 2032 (or 2033).
What This Bill Does
- Excludes any reparations benefit or payment, as defined in the bill, from a taxpayer's gross income.
- Applies to taxable years beginning on or after January 1, 2027, and before January 1, 2032 (or potentially starting in 2028 and ending in 2033 based on amended text).
- Includes specific goals, purposes, objectives, performance indicators, and data collection requirements as required for new tax expenditures.
Who It Names or Affects
- California taxpayers who receive defined reparations benefits or payments during the covered taxable years.
- State agencies responsible for administering the Personal Income Tax Law and reporting on the included goals and performance indicators.
Terms To Know
- Gross Income
- Income from whatever source derived, except as specifically excluded by law.
- Tax Expenditure
- A reduction in tax revenue caused by an exclusion allowed under the law that requires specific goals and performance indicators.
Limits and Unknowns
- The official text lists two possible date ranges (2027–2032 or 2028–2033) without clarifying which one is final in the provided excerpt.
- While the bill states reparations benefits are 'as defined,' the specific definition of what counts as a benefit or payment is not detailed in the summary text.