Adopts Resolution to Support AB 362
Sacramento – Assemblymember Philip Y. Ting (D-San Francisco) praised the action taken last night by the San Francisco Board of Supervisors, whose members voted unanimously to adopt Resolution 130591 in support of AB 362, Ting’s legislation to exempt from state taxation compensation provided by California employers to employees in same-sex partnerships.
“San Francisco has long supported its vibrant LGBTQ community with a strong history of advocacy for equal rights and this is no exception,” said Ting. “In fact, AB 362 is directly related to Supervisor Mark Farrell’s local measure addressing this issue passed in March. San Francisco stands for tax fairness for same-sex couples and so should the State of California and the Federal Government.”
Under existing law, employer sponsored health insurance provided to the partners and children of LGBTQ employees in same-sex partnerships does not qualify for federal tax exemptions. As a result, same-sex couples incur on average an extra $1,069 in taxes per year. In response to this excessive tax burden, California employers have started to adopt policies to compensate their LGBTQ employees for this federal tax expense. However, under existing law, these reimbursements are subject to state income taxes. AB 362 would exempt these compensations from state taxation.
“I am proud to support AB 362 at the State level which expands on my local legislation to counter discriminatory federal tax policy and provide a higher level of equality for same-sex spouses and same-sex domestic partners,” said Supervisor Mark Farrell. “Same-sex couples should not be required to pay more income taxes than others simply due to the nature of their intimate partner relationship.”
Under the provisions of the City and County of San Francisco’s new law, the city will reimburse city employees for the discriminatory federal tax incurred on benefits received for their partner and dependents.
AB 362, authored by Ting, would cover persons in a same-sex partner relationship who work for public entities or private sector companies that choose to reimburse their employees. Among private sector companies providing this type of reimbursement to employees are Google, Kimpton Hotels and Restaurants and Facebook.
“San Francisco’s backing of my measure is one more stamp of approval to a growing list of support on this issue,” said Ting.
AB 362 is sponsored by Equality California and supported by a number of organizations including, the San Francisco Chamber of Commerce, Facebook, and several labor and health organizations.
The tax-fairness legislation passed out of the Assembly and moved to the Senate. There it will be heard in the Senate Governance and Finance committee within the next few weeks.
Assemblymember Ting is the Chair of Assembly Democratic Caucus and the Assembly Select Committee on Asia/California Trade and Investment Promotion, and he serves on the Budget, Business, Professions and Consumer Protection, Environmental Safety and Toxic Materials and the Revenue and Taxation committees.
CONTACT: Carol Chamberlain, carol.chamberlain@asm.ca.gov, office: 916-319-2019, cell: 916-804-5355