The California State Assembly today overwhelmingly approved AB 53, a bill authored by Assemblymember James C. Ramos (D-San Bernardino), which would provide up to a $20,000 state tax exemption for military retirees and their dependents.
“I am heartened that this bill is moving forward. It is intended to acknowledge the many sacrifices of our military retirees and their families and serve as an incentive to keep them in California,” Ramos said. “They frequently start second careers and have needed job skills to fuel the state economy.” Ramos added, “Legislative support has been bipartisan and the governor has marked funding for this effort in the state budget. Now, we need to continue pressing for passage in the state Senate.”
Currently, California is the only state that does not provide any state income tax exemption on military pensions to its approximately 141,000 military retirees. According to the San Diego Military Advisory Council, implementing such a tax exemption could generate significant economic benefits for the state, including the creation of 12,600 new jobs, an increase of $1.27 billion in gross state product (GSP), and an additional $2 billion in total business sales.
AB 53 is jointly sponsored by several leading veteran advocacy organizations, including the American Legion–Department of California, the Marine Corps League–Department of California, the California Association of County Veteran Service Officers, the California Military Officers Association of America, the Enlisted Association of the California National Guard, and the California State Commanders Veterans Council.
A broad coalition of supporters also backs the bill, including the Vietnam Veterans of America–California, Women Veterans Alliance, San Diego Regional Chamber of Commerce, California State Treasurer, California State Board of Equalization, and California State Retirees.