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Assembly committee hears push to exempt military retirement pay up to $20,000
Summary
Supporters urged the Assembly Revenue and Taxation Committee to adopt AB 53, which would exempt up to $20,000 of military retirement and survivor benefits from California personal income tax; the bill was referred to the committee's suspense file.
Assemblymember Arthur Ramos introduced AB 53, a measure that would exempt up to $20,000 of military retirement pay and survivor benefits from California personal income tax.
The bill's sponsor and multiple witnesses told the committee the exemption would help retain and attract military retirees and their families to California. "California is the only state that fully taxes military retirement pay," said retired U.S. Air Force Capt. Ramona Chavez, president of the Military Officers Association of America, California Council of Chapters. "AB 53 gives us an opportunity to course correct and to attract and retain veterans in California."
Supporters described the economic and community contributions of military retirees. Chavez testified that California is home to more than 40,000 military retirees whose combined second-career incomes she estimated at about $134,000 on average. Josh Baker, president of the California Enlisted Association of the National Guard, described how members and spouses choose retirement locations based on tax treatment and said his brother left California after retirement. Don Harper of the American Legion of California, Fred Jaffin, Paul Gonzales and representatives of county veterans services and veterans'service organizations also registered support.
Committee members voiced support for the bill and several members agreed to be coauthors. Ramos closed by asking for the committee's aye vote.
Formal action: the committee referred AB 53 to the suspense file for further consideration.
AB 53 was presented and supported by multiple veterans groups and county officials; no witnesses registered opposition in the hearing record. The bill will await further fiscal review on the committee's suspense calendar.
