Sacramento – Assemblymember Chris Holden’s legislation to give active duty military personnel a tax break when they are transferred into California was approved by the state Assembly late Wednesday. AB 143, the Military Use Tax Exemption, would eliminate use taxes – a type of sales tax – on personal property purchased by an active duty military member who has been transferred into the state.
“It just doesn’t seem fair to tax our active duty military personnel when they are already making so many sacrifices,” explained Assemblymember Holden. “California is home to nearly 13% of active duty members stationed in the U.S. It just seems the right thing to do to relieve some of the burden for those who may least be able to afford it,” concluded Holden.
Here’s how it works: A “use tax” is levied on items purchased out-of-state for use in California.
If you are on active duty in Texas and buy a computer or furniture, then three months later you are transferred to a base in California, you would be required to pay a “use tax”. Under AB 143 the tax would be waived.
Active duty military in California are already exempt from paying taxes on such items as cars or trucks they bring into the state. This measure would expand that to include items such as furniture, stereos, computers or any items purchased from a retailer while living in another state.
AB 143 is supported by the State Board of Equalization and Veterans groups throughout California. It now moves to the Senate for consideration.
CONTACT: Wendy Gordon, 626.351-1917