The California State Assembly has overwhelmingly approved AB 53, a bill authored by Assemblymember James C. Ramos (D-San Bernardino) aimed at providing up to a $20,000 state income tax exemption for military retirees and their dependents.
Assemblymember Ramos expressed optimism about the bill’s progress, emphasizing that it honors the sacrifices of military retirees and serves as an incentive to retain them in California. “They frequently start second careers and have needed job skills to fuel the state economy,” Ramos said. The bill has bipartisan legislative support and funding has been marked by the governor in the state budget. The next step is for the bill to pass in the state Senate.
Currently, California is the only state that does not offer any state income tax exemption on military pensions to its roughly 141,000 military retirees. The San Diego Military Advisory Council estimates that implementing the tax exemption could create 12,600 new jobs, boost the state’s gross state product by $1.27 billion, and increase total business sales by $2 billion.
The bill is supported by key veteran advocacy groups such as the American Legion–Department of California, Marine Corps League–Department of California, California Association of County Veteran Service Officers, and several others. Additional supporters include the Vietnam Veterans of America–California, Women Veterans Alliance, San Diego Regional Chamber of Commerce, California State Treasurer, and California State Retirees.
This move represents a significant effort to recognize and support the military community while potentially stimulating California’s economy.
