DATE: August 26, 2025
TO: Board of Supervisors 27
SUBJECT:
Title
EXPANDING TAX RELIEF FOR VETERANS AND MILITARY FAMILIES BY SUPPORTING AB 53 AND SB 623 (DISTRICTS: ALL)
Body
OVERVIEW
Assembly Bill 53 (AB 53) and Senate Bill 623 (SB 623), authored by Assemblymember James Ramos and Senator Bob Archuleta respectively, are important legislative proposals designed to provide targeted financial relief to veterans and their families. These bills recognize the unique sacrifices and contributions made by members of the military and aim to ease their tax burdens in two key areas: income and property.
Veterans often face distinct financial challenges, including the high cost of living and housing expenses, which can create additional hardships after their service. San Diego County is home to a large and active veteran community and supporting those who have served is vital to the region's social and economic well-being. It is in the County's best interest to ensure that veterans are able to live, work, and retire in San Diego. Currently, California is one of only five states that treat military retirement pay like ordinary income and tax it fully.
AB 53 seeks to exempt up to $20,000 annually of military retirement pay and Survivor Benefit Plan annuities from state personal income tax for qualified military retirees and surviving spouses. This exemption aims to provide meaningful financial relief, helping veterans maintain economic stability and encouraging them to remain in the region.
In parallel, SB 623 proposes a constitutional amendment that would allow veterans and disabled veterans to claim both the homeowners' exemption and the veterans' or disabled veterans' exemption on the same property. Currently, California law prohibits stacking these exemptions, limiting the property tax relief veterans can receive on their primary residence. If approved by voters in the 2026 s...
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