SAN FRANCISCO (CBS SF) – State Assemblyman Phil Ting announced legislation this week that would provide tax relief for people in same-sex relationships who receive health care benefits from their partner.
Currently, health benefits in same-sex partnerships are taxed by the federal government as income, although some California companies reimburse that tax to their employees.
However, the state then taxes that reimbursement, an average of about $540 annually that opposite-sex families do not have to pay.
Assembly Bill 362, authored by Ting, D-San Francisco, would exempt same-sex couples from paying that reimbursement tax.
“We want to close that loophole,” he said, adding that he will “continue to fight for greater fairness and equity in California.”
California companies that offer the federal tax reimbursements include Facebook and Google, while Cambridge, Mass., also reimburses its city employees.
Ting said nearly 20,000 people in the state could potentially be affected by the legislation.