Assemblymember Ramos championed the tax relief over several years and effort now pays off for military retirees
California celebrates 2025 Veterans Day with more than joyful and proud parades
Veterans and families can save up to $20,000 on state taxes starting with 2025 returns
Assemblymember Ramos championed the tax relief over several years and effort now pays off for military retirees
This Veterans Day, California military retirees will be able to celebrate the day knowing they can claim a state tax exemption for their service because of a years-long effort by Assemblymember James C. Ramos and negotiations with Gov. Gavin Newsom and his staff. California was the only state without a partial or total exemption on military retiree exemptions.
Department of Defense Data reports California is home to 1.4 million veterans, and as of 2021, we had a population of 132,344 military retirees in our state and 27,600 survivors. A 2023 Assembly analysis of a previous Ramos effort in 2023, AB 46, noted, “Between 2010 and 2020 the nation's population of military retirees has increased by 4%. California, during this period, was one of the few states that saw a reduction in the number of military retirees. California had a decline of 12% in the state's military retiree population. During the same period, Nevada showed a gain of 10% and Arizona a gain of 6%. Both Arizona and Nevada fully exempt military retirement from state taxes.”
Ramos said, “We rightfully honor and thank our veterans with holidays, parades and ceremonies, but they also deserve more concrete appreciation for their service. This is a long overdue and well-deserved acknowledgement for our retirees and their families for the many sacrifices they made protecting and serving our country. Military retiree organizations, my colleagues and I have struggled for years to make this tax exemption a reality for our veterans. This is a step toward making California more veteran-friendly so they continue to live and contribute to this state. I thank Gov. Newsom for budgeting the exemption. It is one of the proudest accomplishments of my legislative career.”
Secretary of the California Department of Veterans Affairs, Lindsey Sin, shared “The inclusion of military retirement tax relief in the California state budget is a significant victory for our California veterans and their families. It honors their sacrifices made in service to our country, while providing essential financial relief. It’s also a win for California, encouraging more veterans to choose the Golden State as their home in retirement.”
Jeff Breiten of the Corps League- Marine Department of California Legislative Affairs Office, said, “Assemblymember Ramos was keenly aware of the fact that California's military retiree population has experienced a steady decline dating back to 2010. California was the only state in the country that did not provide an exemption on military retirement from state income taxes. Assemblymember Ramos introduced legislation (AB 46) three years ago to exclude military retirement from state income taxes to remedy the exodus of military retirees from California to other states. After three years of strong advocacy for the tax exclusion, Assemblymember Ramos again introduced a bill (AB 53) to exclude military retirement from state income taxes in 2025. Assemblymember Ramos worked tirelessly during the 2025 legislative session with Governor Newsom's Administration, to finally remove the stigma of California being the only state in the country that failed to provide a tax exclusion on military retirement pay.” Breiten added, “Military retirees and surviving spouses brought over $4.1 billion federal dollars into California’s economy last year.”
Retirees are not the only ones expected to benefit from the exemption. One media station cited a San Diego study reported the state tax exemption is expected to result in 12,600 new jobs, $830 million in additional personal income, $1.2 billion to California’s gross State Product and $2 billion in total business sales.
In attendance at a September celebration of this new benefit for retirees were Lindsey Sin, Secretary of the California Department of Veterans Affairs, Raymond Wetzel, California commander of the Military Order of the Purple Heart; Jo Keller, California commander, AMVETS and David Bramblia, California Council of Chapters of the Military Officers Association of America. Kathy Prout, Gold Star Wives of America and member of the national board of directors and liaison of the Surviving Military Officers Association represented survivors. The Color Guard from the Public Safety Academy of San Bernardino also participated.
AB 53, Ramos’s latest proposal, was 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.
A partial list of AB 53 supporters included Vietnam Veterans of America, California, Women Veterans Alliance, San Diego Regional Chamber of Commerce, California State Commanders Veterans Council, the California State Treasurer, California State Board of Equalization and California State Retirees.
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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 and the Assembly Select Committee on Native American Affairs.