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Board supports AB 53 to exclude military pensions from state income tax; Controller abstains pending analysis
Summary
The Board voted to support AB 53, a bill to exclude military pensions from California personal income tax; Vice Chair Lieber moved and Member Vasquez seconded the motion. Controller Cohen abstained, citing lack of fiscal analysis on the record.
The Board of Equalization voted on Feb. 19 to express support for AB 53, a bill by Assemblymember Ramos to exclude military pensions from state personal income tax.
The vote is significant because California was described in the meeting as the only state that fully taxes military pensions; the measure would exempt qualifying uniformed-service retirees and survivors from state income tax on military retirement pay.
Vice Chair Susan Lieber moved the Board adopt a position of support and Member Vasquez seconded. The Controller said she and a staffer had concerns about not having had an available bill analysis and therefore said she would abstain from today's vote until fiscal impacts are clearer; other members voiced support. The governor's budget includes language supporting the bill, and stakeholder groups including several veterans'service organizations were cited in favor.
Roll call on the motion to support AB 53: Chairman Gaines 'Aye'; Vice Chair Lieber 'Aye'; Member Vasquez 'Aye'; Member Schaffer 'Aye'; Controller Cohen 'Abstain'. The motion passed.
Board staff noted the controller could submit a separate letter later if a fiscal analysis becomes available or the Controller could join a subsequent board vote; the initial support letter will be transmitted on the Chairman's letterhead reflecting the Board's action and noting the Controller's abstention.
The Board's action is a policy position and does not change tax law; it signals the Board's legislative preference as AB 53 proceeds through the Legislature.
