Holden's Bill Give Sales Tax Break to Military Members

Assemblyman Chris Holden's bill to give veterans who transfer to California a break on state use tax was signed into law Thursday.

“It just doesn’t seem fair to tax active duty military personnel when they are already making so many sacrifices,”  said Holden, D-Pasadena.  “It’s the right thing to do to relieve some of the tax burden for our service men and women who are already sacrificing so much for their country.” 

Under Assembly Bill 143, use tax, a form of sales tax, on personal property purchased by an active duty military member or National Guard member who has been transferred into the state would be eliminated, according to a news release.

Before the bill was signed into law, a use tax was levied on items purchases out-of-state for use in California.  An active duty serviceman in Texas would buy a computer or furniture. If he was transferred to a base in California three months after the purchase, for example, he would have to pay a use tax on the purchase.  Under the new law, that tax would be waived, according to Holden.

Around 13 percent of the one million active duty members of the armed forces station in the United States live in California, Holden said. The bill received support from veterans organizations across the state, including the American Legion, California Association of County Veterans Service Officers, California State Commanders Veterans Council, Veterans Democratic Club of Sacramento County, VFW of the United States – California, Vietnam Veterans of America.