UPDATE: AB 53 Referred to Assembly Appropriations Suspense File
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Retired veterans, lawmakers urge passage of Ramos’s AB 53 to grant military retirees state tax break on federal pensions
Downloadable Link: https://vimeo.com/1066752136/2efba473dd?share=copy
YOUTUBE LINK OF NEWS BRIEFING BRIEFING: https://www.youtube.com/watch?v=ga5hGw3xEug&list=PLUWDXPiiAM-LS0sF7wCRDIITetfgVWAYs&index=1
SACRAMENTO – Retired veterans and a bipartisan group of legislators from both houses today called for passage of AB 53 that would grant uniformed retirees and their survivors a state tax exemption on their military pensions. Assemblymember James C. Ramos (D-San Bernardino) introduced the measure in December. The bill is scheduled for a hearing today in the Assembly Committee on Revenue and Taxation.
“This bill is necessary to make California more veteran friendly, and make it a more desirable place to call home upon retirement. We are off to a strong start this year in attempting to get this bill passed as the January budget includes funding for this proposal, and we have a lengthy list of 28 bipartisan co-authors. Military retirees often begin another career after retirement and contribute in many other ways to the state. AB 53 honors the many sacrifices of our armed forces personnel and their families,” Ramos said.
Armed forces service members are eligible to retire after 20 years and all states but California grant a partial or complete tax exemption on their federal pensions. As of 2021, more than 132,000 retirees lived in California and received about $4.1 billion annually from the Department of the Defense (DoD). Additionally, more than 27,000 survivors residing in California received about $415 million annually. Since 2013, the population of state retirees and survivors receiving pay from DoD has been steadily declining by 1% to 3% every year since 2013.
Fred Green, Jr., LCDR, USN (Ret), Chair, California State Commanders Veterans Council
"On behalf of the California State Commanders Veterans Council, I would like to extend our heartfelt gratitude to Assemblymember Ramos for his tireless and multi-year efforts in advancing legislation to provide tax relief to military retirees. His dedication to this cause, spanning several legislative sessions, is truly commendable. AB 53 is a crucial step toward making California more attractive to those who have served our nation, including military retirees and their families, particularly surviving spouses who often face significant financial challenges. We also appreciate Governor Newsom's allocation of funds in the budget, marking a significant first step toward aligning California with other states that support military retirees. However, we recognize that more work is needed to retain and attract skilled veterans to our state. We invite the Governor and the Legislature to collaborate with us now and in future years to expand this tax relief framework, ensuring that California remains a welcoming home for those who have served our nation."
Ramos who has introduced proposals for military retiree state tax exemptions three times in previous years, including during his chairmanship of the Assembly Committee on Military and Veterans Affairs, was heartened by the governor’s willingness to include a pension tax exemption in this year’s state budget proposal. Last year, Ramos’s bill was the first time the measure made it to the other house of the legislature’s fiscal committee.
“I’m not one to give up on something I think is important, and I am grateful to the governor for including this item in the upcoming year’s budget proposal. We are excited to work with him on this exemption for those who have served our country and that honors the many sacrifices of our armed services personnel and their families.”
AB 53 is jointly sponsored by the American Legion-Department of California, the Marine Corps League-Department of California, the California Association of County Veteran Service Officers, California Military Officers Association of America, the Enlisted Association of the California National Guard of the United States and the California State Commanders Veterans Council.
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Assemblymember James C. Ramos proudly represents the 45th Assembly district that includes the Cities of Fontana, Highland, Mentone, Redlands, Rialto and San Bernardino. He is the first and only California Native American serving in the state’s legislature. Ramos chairs the Assembly Budget Subcommittee #6 on Public Safety.