Personal income taxes: exclusion: National Guard.
If SB 924 is enacted, it will significantly affect the personal income taxes of active National Guard members in California by excluding their service income from taxable gross income. The bill seeks to alleviate financial burdens on active militia members, fostering a sense of support from the state towards those who risk their lives in service. This exclusion is set to last for a decade, reinforcing the state's commitment to providing favorable tax treatment for military service individuals.
Senate Bill 924, introduced by Senator Morrell, amends the Revenue and Taxation Code to provide a tax exclusion for income received by members of the active militia, specifically those in the National Guard, while on active service. This tax exclusion applies to taxable years beginning on or after January 1, 2018, and before January 1, 2028. The legislative intent is to acknowledge the service of National Guard members by exempting their earnings from state income tax during active duty, providing financial relief to these service members and their families.
The general sentiment around SB 924 seems positive among legislators advocating for military service members, who see this bill as a long-overdue recognition of the sacrifices made by National Guard members. The bill passed with unanimous support in the committee, indicating a strong bipartisan consensus about its necessity. Supporters view the tax exclusion as a simple yet impactful way to offer financial support and acknowledge the duty of militia members.
Potential points of contention could arise regarding equity in tax policy, as the bill could be perceived as preferential treatment for military members compared to other workers. Critics might argue that such tax breaks may lead to broader discussions on tax equity amongst different groups of taxpayers. However, the benefits offered under this bill are generally seen as specifically tailored towards those active in military service, mitigating arguments against it based on tax fairness principles.