Plain English Breakdown
The exact definition of 'peace officer' is referenced but not detailed in the provided text; it relies on existing state law definitions.
Tax Exclusion for Law Enforcement Retirement Benefits
AB-814 excludes certain retirement payments from taxable income for peace officers and their surviving family members for tax years between January 1, 2025, and December 31, 2029.
What This Bill Does
- Excludes qualified pension or annuity payments from gross income for tax years starting on or after January 1, 2025, but before January 1, 2030.
- Defines qualified payments as money received by a peace officer based on their service in that role.
- Includes payments made to the surviving spouse or dependent of a person who lost their life while serving as a peace officer.
- Requires the Franchise Tax Board to share data with the Legislative Analyst's Office for reporting purposes.
- Makes it a crime to violate laws limiting how taxpayer information is collected and used by the Legislative Analyst's Office.
Who It Names or Affects
- Peace officers who receive pension payments based on their service.
- Surviving spouses or dependents of peace officers who died in the line of duty.
- The Franchise Tax Board, which must provide data for reports.
- Local agencies and school districts regarding state reimbursement rules.
Terms To Know
- Gross income
- Total money earned from all sources before any taxes are taken out, except as specifically excluded by law.
- Peace officer
- A person defined by state law who performs specific duties in a peace officer role.
Limits and Unknowns
- The bill only applies to taxable years between January 1, 2025, and December 31, 2029.
- Qualified payments must come from pension plans for peace officers or annuity plans for survivors of those who died in service.