ENDING TAXATION OF MILITARY RETIREE PAY IN CALIFORNIA: An Anaylsis of the Costs & Benefits
SAN DIEGO, Calif. – The San Diego Military Advisory Council will release a report titled “Ending Taxation of Military Retiree Pay in California” this Friday during a ceremony at the Veterans Memorial Museum at Balboa Park. The study for the report, which was conducted by the Fermanian Business & Economic Institute, revealed that the elimination of state tax on military retiree pay in 2016 would have led to an increase in state and local revenue of $18.4 million.
”The results of this study, which was produced in partnership with the California Governor’s Military Council, provide important details that support Assemblymember Bill Brough’s bill, AB 2394 that seeks to incentivize more veterans to live in California by exempting their retirement pay from state income tax,” said Randy Bogle, Executive Director of SDMAC.
California is one of only nine states, including Georgia, Montana, New Mexico, North Dakota, Oregon, Rhode Island, Vermont, and Virginia, to fully tax military retirement pay. Ten states partially tax military retiree pensions and 31 states fully exempt military retiree pay from taxation. By joining these 31 states, California would likely see additional economic benefits beyond state and local government revenue growth to include additional tax on post military retirement careers, gross state product, and total business sales.