SACRAMENTO, CA – Assemblymember Kelly Seyarto (R-Murrieta) has introduced AB 291, a bill that will make the payments from Survivor Benefit Plans (SBP) tax free in California.
California is one of the few states that fully taxes SBP which allow retired service members to allocate a portion of their retired pay to a spouse, child, or other eligible beneficiary after their death. Currently there are just over 28,700 military survivors receiving this benefit within California, with over 92% of them being 65 years old and older.
“It is incredibly sad and almost insulting that we give so little as a thank you to our service members and their families. They sacrifice so much for our country to defend our freedoms,” said Seyarto. “I was astonished to learn that while California and the IRS do not tax Life Insurance Payments, California does tax this form of life insurance for our service members and veterans. Surely one of the simplest ways we can express our gratitude to these families that have sacrificed for all of us is to not tax the very compensation we give them for that loss.”
Assemblymember Kelly Seyarto served the State of California as a firefighter for 35 years, retiring at the rank of Battalion Chief. During his time in service, he connected and served with many service members and veterans.