HomeNews in BriefGovenor Signs Assemblymember Holden's Bill Giving Military Personnel Tax Break

Govenor Signs Assemblymember Holden's Bill Giving Military Personnel Tax Break

Black news from Pasadena - In Brief - Chris Holden's AB 143 - Military Tax BreakSacramento, CA – Members of the Armed Forces and National Guard will get a break on state use tax when they are transferred to California under Assemblymember Chris Holden's bill signed today by Governor Brown.

"It just doesn't seem fair to tax active duty military personnel when they are already making so many sacrifices," explained Assemblymember Holden (D-Pasadena). "It's the right thing to do to relieve some of the tax burden for our service men and women who are already sacrificing so much for their country."

AB 143, the Military Use Tax Exemption, would eliminate a type of sales tax known as use tax, on personal property purchased by an active duty military member or National Guard member who has been transferred into the state.

Here's how it works: A use tax is levied on items purchased out-of-state for use in California.

If you are on active duty in Texas and buy a computer or furniture, then three months later you are transferred to a base in California, you would be required to pay a "use tax". Under AB 143, that tax would be waived.

California is home to 13 percent of the more than one million active duty members of the armed forces stationed in the U.S. and has enjoyed widespread support from veterans organizations across the state: American Legion, California Association of County Veterans Service Officers, California State Commanders Veterans Council, Veterans Democratic Club of Sacramento County, VFW of the United States – California, Vietnam Veterans of America.



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