By Melanie Johnson
A proposed bill that would give service members a tax break once they are transferred to California was approved today by the Senate Governance & Finance Committee, according to a news release.
The legislation, authored by Assemblyman Chris Holden, D-Pasadena, would eliminate use taxes, a type of sales tax, on personal property an active duty military member who has transferred into the state pays on purchases, according to Holden.
“California is home to nearly 13 (percent) of 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,” Holden said in a statement.
The current law levies a "use tax" on out-of-state purchases on items for use in California.
As it stands now, an active duty service member in Texas who buys a computer or furniture and then gets transferred to a base in California would have to pay a "use tax," according to Holden.
Assembly Bill 143 would waive this tax for active duty personnel and National Guard. The next step is for the Senate Appropriations Committee to review the proposed legislation.