California State Senator Brian Jones is sponsoring a bill that would make the pensions of retirees immune from income tax. If Senate Bill 1071 passes it would remove California from the list of only seven states that fully tax the pensions of military veterans.
The bill reads in part, "for taxable years beginning on or after January 1, 2021, and before January 1, 2031, gross income shall not include retirement pay received by a taxpayer from the federal government for service in the uniformed services during the taxable year."
"The men and women who served our country earned every dollar of their retirement pay and states should not be trying to tax it. This measure is the right thing to do and will help keep veterans and their families in California," Jones said.