Please see attached Bill analysis from the Assembly Committee on revenue and taxation regarding AB-46, Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act.
In this document the committee staff comments that “AB 46 recognizes members of the Armed Forces and their contribution to our nation and seeks to exempt their retirement pay once they retire after twenty years of service.
The purpose of the bill is twofold; to honor those who dedicated their life to serving their country, and to retain and attract uniformed service retirees to California for the purposes of strengthening the state’s skilled workforce, bringing stability to communities, and contributing to the state and local tax base.
This bill excludes uniformed services retirement pay and annuity payments from the United States Department of Defense Survivor Benefit Plan from gross income for taxable years beginning on or after January 1, 2024, and before January 1, 2034. In other words, this bill provides that retirement pay for members of the uniformed services and survivor benefits paid to beneficiaries are not considered taxable income for the purposes of the PIT.”
Author: caLegion HQ
Chartered and incorporated by Congress in 1919, The American Legion is the nation’s largest veterans service organization and its Department of California is dedicated to serving the approximately 2 million veterans living in communities across the Golden State.
