The State of California officially endorsed a resolution supporting greater tax equity for married same-sex couples and registered domestic partners. The Tax Equity Resolution, AJR 29, was approved by the California Assembly with a procedural concurrence vote that included bipartisan support. Authored by Assemblymember Mike Feuer (D-Los Angeles) and sponsored by Equality California, the resolution urges the IRS to change its policy that now requires many same-sex couples who are in different tax brackets to pay unfairly high taxes because the federal government fails to recognize how California applies its community property laws.
“All legally recognized couples deserve to be taxed fairly and appropriately, regardless of their sexual orientation,” said Mario Guerrero, Equality California’s government affairs director. “We thank lawmakers for urging the federal government to end its disproportionate and unjust taxation of same-sex registered domestic partners and married same-sex couples.”
The Internal Revenue Service (IRS) recently issued a new policy that requires California's same-sex couples registered as domestic partners to combine their incomes and report half on their individual tax returns. However, this policy is not binding. AJR 29 requests the IRS to ensure that California’s registered domestic partners and same-sex spouses receive the same treatment. Specifically, it asks the IRS to issue a binding ruling for all of California’s same-sex couples.
“I commend the IRS for affirming that domestic partners have the same community property rights as heterosexual spouses. Now it needs to ensure that same-sex married couples can enjoy the same protections from unfairly high taxes. I urge the IRS to respect California law and honor the rights of all of California’s same sex couples,” said Feuer.
The joint resolution seeks tax equity for California resident same-sex couples who have community property arising from their status as registered domestic partners or married couples.
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