Saturday, May 23, 2015

Assembly member Chris Holden’s legislation to give service members a tax break when they are transferred to California has been approved by the state Legislature and now goes to Governor Brown for signature.

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

“California is home to 13% of the more than one million active duty members of the armed forces stationed in the U.S. It just seems the right thing to do to relieve some of the tax burden for these men and women who are already sacrificing so much in service to their country,” stated Assembly member Holden.

Under current law, a “use tax” is levied on items purchased out-of-state for use in California.

Generally, when an active duty service member in Texas buys a computer or furniture, then three months later is transferred to a base in California, he or she would be required to pay a “use tax.” Under AB 143 the tax would be waived for active duty personnel and National Guard.

AB 143 enjoys widespread support including the State Board of Equalization and Veterans groups throughout California. The measure passed out of the Senate on concurrence Monday with a vote of 39 to 0.  Governor Brown now has 30 days to sign or veto AB 143.


Category: News

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