CaliforniaVetoed bill would have excluded reparations payments from state income tax
The vetoed bill would have let California taxpayers leave qualifying government reparations payments out of their state taxable income for tax years 2028 through 2032.
What it does
People who receive qualifying reparations payments would not count them as state taxable income for a limited time. This includes payments and other financial compensation from government programs that provide redress for harm or discrimination.
The bill would state that the exclusion aims to keep state taxes from reducing reparations payments, and that no data are available to collect or report.
Argument forRecipients could keep more of their reparations payments because California would not count them as taxable income during the covered years.
Argument againstThe exclusion could reduce state income tax collections, leaving less revenue available for public services.
More detail
California would leave qualifying reparations payments out of a recipient’s state taxable income. This covers payments to individuals under federal, state, local, tribal, or territorial government programs addressing past or ongoing harm, discrimination, injustice, or unequal treatment. The payment must be financial compensation provided under a qualifying government reparations program. The exclusion would apply to tax years beginning on or after January 1, 2028, and before January 1, 2033.
The bill would add information about this tax exclusion’s purpose and available data. This information concerns the proposed tax exclusion for reparations payments. The bill says there is no available data to collect or report about the exclusion. The bill says the act would take effect immediately as a tax levy.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 30Vetoed by Governor Gavin Newsom.Latest
- Aug 27Enrolled and presented to the Governor at 4 p.m.To Governor
- Aug 20Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 58. Noes 16. Page 6325.).Major
- Vote recorded AB 2186 McKinnor Concurrence in Senate Amendments. Result: pass.Lower
- Aug 19In Assembly. Concurrence in Senate amendments pending.
- Vote recorded 3rd Reading AB2186 McKinnor et al. By Smallwood-Cuevas. Result: pass.Upper
- Aug 19Read third time. Passed. Ordered to the Assembly. (Ayes 28. Noes 10. Page 2186.).Passed Senate
- Aug 13Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Upper
- Aug 13From committee: Do pass. (Ayes 5. Noes 2.) (August 13).Minor
- Aug 3In committee: Referred to APPR. suspense file.Minor
- Vote recorded Placed on suspense file. Result: pass.Upper
- Jun 24From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 0.) (June 24). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- Jun 16From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on REV. & TAX.Major
- Jun 3Referred to Com. on REV. & TAX.Minor
- May 27In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 2186 McKinnor Assembly Third Reading. Result: pass.Lower
- May 26Read third time. Passed. Ordered to the Senate. (Ayes 58. Noes 17. Page 5401.)Passed Assembly
- May 19Read second time. Ordered to third reading.Minor
- May 18Read second time and amended. Ordered returned to second reading.Major
- May 14From committee: Amend, and do pass as amended. (Ayes 11. Noes 4.) (May 14).Major
- Vote recorded Do pass as amended. Result: pass.Lower
- May 14Joint Rule 62(a), file notice suspended. (Page 5030.)
- May 13In committee: Set, first hearing. Referred to APPR. suspense file.Minor
- Apr 28From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 2.) (April 27). Re-referred to Com. on APPR.Minor
- Apr 27
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Apr 13In committee: Set, first hearing. Referred to REV. & TAX. suspense file.Minor
- Mar 17Re-referred to Com. on REV. & TAX.Minor
- Mar 16From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.Major
- Mar 16Referred to Com. on REV. & TAX.Minor
- Feb 20From printer. May be heard in committee March 22.
- Feb 19Read first time. To print.Introduced
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