California Veterans Advocate for Tax Exemption on Military Retirement Pay
A group of veterans and their supporters are rallying behind a bill in the California Assembly that could have significant implications for military retirees’ income.
Presently, California taxes veterans on their retirement pay, but the proposed legislation aims to change that.
The bill, known as B 46, was introduced by Assembly member James Ramos and seeks to exempt military retirement pay from state personal income tax for a period of ten years.
If passed, the bill would not only provide tax relief to servicemen and women who served in the Golden State, but it would also align California with the majority of other states in the country that already offer partial or full exemptions on retirement pay for military personnel.
For veterans like Ramona Chavez, a former member of the US Air Force, California has been an attractive place to settle due to its various opportunities, job market, diversity, and strong economy.
However, the burden of taxes on military retirement pay has made California the sole state that fully taxes this benefit.
Chavez and others hope that the bill’s passage will change this policy, making it more financially feasible for military retirees to continue residing in California.
The potential tax exemption could have a significant impact on the budgets of veterans and their families.
Susanna Story, a Gold Star wife, stressed that the exemption would greatly benefit her financially.
Additionally, supporters of the bill argue that it would help retain skilled service members in the state, providing a valuable workforce for California’s economy.
Although the bill has made progress by passing the revenue and taxation committee, it still faces challenges.
A fiscal analysis estimates that the bill would result in a revenue loss of $50 million in 2024 and $85 million in 2025.
However, proponents of the legislation argue that these figures are relatively small when compared to the billions of dollars at stake and the positive impact it could have on military retirees and the state as a whole.
The bill now awaits a decision from the Appropriations Committee, which has until the end of the week to refer it to the assembly floor for a vote.
The veterans and their supporters remain hopeful that the California Assembly will recognize the significance of this legislation and take the necessary steps to alleviate the tax burden on military retirement pay, benefiting both veterans and the state’s economy.
