A bill in California’s state Legislature proposes that retirees and surviving spouses be exempted from paying state income taxes on military pensions for the next ten years. This move aims to incentivize military personnel to settle in California after retirement, given that the state currently taxes veterans’ pensions fully. The exemption would align California with other states and could result in economic benefits.
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Key Points:Â
- California is among three states that fully tax military pensions, which has contributed to a trend of military retirees leaving the state upon retirement.
- The bill, introduced by Highland Assemblyman James Ramos and supported by several veteran groups, is known as AB46 and is currently in the Senate Appropriations Committee.
- Mike McNerney, former Air Force captain and director with Vets In Tech, believes that the tax exemption would encourage military retirees to settle in California, subsequently boosting the state’s economy.
- The tax reversal could increase veterans’ incomes by over $830 million annually and potentially create over 12,000 jobs in California.
- If the bill passes the Senate Appropriations Committee, it will be voted on by the entire state Senate and, if approved, forwarded to Gov. Gavin Newsom for potential enactment.
Source: https://abc7.com/california-veterans-military-pensions-state-taxes-retirement-in/13719931/Â
