A bill introduced by California Assemblymember James C. Ramos would make military retirees’ service pensions tax exempt in California. (Photo: Kevin Sanders for California Globe)
A bill introduced by Assemblymember James C. Ramos (D-Highland) on Jan. 10 would exempt military retirees’ service pensions from California income taxes possibly as early as 2023.
The bill, AB-1623, would only apply to taxpayers over the age of 60 who completed 20 years of military service, retired from the Commissioned Corps of the U.S. Public Health Service, or retired from National Oceanic and Atmospheric Administration Commissioned Officer Corps.
In November, Assemblymember Ramos stated, “these men and women have served our nation in a variety of capacities and they and their families have frequently performed their service at great personal sacrifice. California needs to more fully acknowledge the contributions they make.”
The bill is garnering support from veteran service organizations such as the California State Commanders Veterans Council, or CSCVC. The VSO notes that the bill would “honor those who dedicated their life to serving their country” and “attract uniformed service retirees to California for the purposes of strengthening the state’s skilled workforce.”
If the bill is passed in its current form, the California Assembly would have until Jan. 2033 to implement the change.
Currently, California’s Personal Income Tax Law only excludes combat-related special compensation.
Interested readers can visit the CSCVC’s website to send a message to their local representative.
Author: Christian Southards
Coming from a family with a proud military background and wanting to contribute his writing skills to a worthy cause, Christian began writing for the California American Legion in August of 2020. His father is a 25-year Army Veteran and his grandfather served in the Navy during Vietnam.