1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Pursuant to this Court’s Orders of November 26, 2013 [Dkt. 148] and December 4, 2013 [Dkt. 151], Federal Defendants respectfully submit this brief regarding the import of the Supreme Court’s decisions in
Windsor v. United States
, 133 S. Ct. 2675 (2013), and
Hollingsworth v. Perry
, 133 S. Ct. 2652 (2013), on this Court’s prior May 24, 2012 order [Dkt. 124] and judgment [Dkt. 125] as they relate to the domestic partner plaintiffs. At issue is § 7702B(f) of the Internal Revenue Code, 26 U.S.C. § 7702B(f), which provides that enrollees in a state-maintained long-term care (“LTC”) plan can receive certain tax benefits if the plan’s enrollment is limited to state employees, their spouses and other specified relatives not including domestic partners.
Applying rational basis review, this Court previously held that the omission of domestic partners from the list of eligible family members in § 7702B(f) discriminated on the basis of sexual orientation in violation of equal protection because, even though both same- and opposite-sex domestic partners are excluded from tax-favored § 7702B(f) plans, same-sex domestic partners in California could not become eligible for participation in such LTC plans by marrying (whereas opposite-sex domestic partners could marry and become eligible). In
, the Supreme Court found a lack of appellate standing, thereby leaving intact the district court’s decision striking down California’s same-sex marriage ban, Proposition 8, as unconstitutional. Accordingly, same-sex couples can now marry in California. In
, the Supreme Court struck down Section 3 of the Defense of Marriage Act (“DOMA”), which limited marriage for federal law purposes to opposite-sex married couples, as unconstitutional. Accordingly, under federal law, the terms “spouse” and “marriage” now no longer preclude same-sex spouses. As a result of these rulings, same-sex domestic partners in California can become eligible for tax benefits under § 7702B(f) by marrying—just as opposite-sex domestic
An enrollee may deduct the premiums for LTC insurance as an itemized deduction if the enrollee’s total annual medical expenses, inclusive of the LTC insurance premiums, exceed 10% of the enrollee’s gross adjustable income. 26 U.S.C. §§ 213(a), (d)(1), (d)(10). In addition, if and when the enrollee receives payments from the LTC plan, he or she can exclude the payments from gross income.
§§ 104(a)(3), 7702B(a)(2), (d).
Fed Defs’ Brief Regarding
, Case No. CV 4:10-01564-CW Page 1
Case4:10-cv-01564-CW Document158 Filed02/13/14 Page2 of 14