Saturday, 25 February 2017

February 17, 2017 - SACRAMENTO – Assemblyman Adam C. Gray (D-Merced) has announced the introduction of the Service to Civilian Act to assist retiring military servicemembers as they transition into civilian life.
gray adam california assemblymember merced
“Despite having the nation’s largest veteran population, California’s policies are increasingly driving veterans out of the state,” said Gray. “Our policies are especially burdensome for newly retired, post-9/11 veterans just transitioning to civilian life.”

Unlike most other states, California provides no form of tax exemption for military retirement pay. Gray previously introduced legislation to fully exempt military retirement pay from the state income tax, but that measure stalled in the Assembly Appropriations Committee due to cost concerns.

“I continue to believe California should not balance its checkbook on the backs of veterans,” said Gray. “Military retirement pay should be fully tax exempt as it is in 20 other states. As we continue to make that case in Sacramento, the Service to Civilian Act is an important first step.”

The Service to Civilian Act would provide a depreciating tax exemption over the course of the first five years after a veteran retires from military service. The bill calls for 100 percent of military retirement pay to be exempt from state income tax in the first year of retirement, 80 percent the second year, 60 percent the third year, 40 percent the fourth year, and 20 percent the fifth year.

“Retiring from the service creates an incredible amount of uncertainty for military families,” continued Gray. “Newly retired veterans are less likely to have civilian employment or a place to live, and are more likely to struggle with post-traumatic stress and the lack of military structure. The Service to Civilian Act will give our veterans a running start at a time they and their families need it most.”
Assemblymember Adam C. Gray represents the 21st Assembly District which includes all of Merced County and portions of Stanislaus County.
Source: Assemblymember Adam C. Gray
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