US News
Newsom vetoes California reparations income tax exemption bill
Fox News reports Gov. Gavin Newsom vetoed AB 2186, which would have exempted future reparations payments from personal income tax, citing fiscal uncertainty.
The short version
- Fox News reports Gov. Gavin Newsom vetoed AB 2186 on Sept. 30, citing fiscal uncertainty and an unknown tax scope.[Fox News]
- The vetoed bill would have exempted future reparations payments from California personal income tax for tax years 2028 through 2032.[Fox News]
- Newsom also signed AB 2599, requiring businesses with over $100 million in gross receipts to disclose slavery-era transactions by January 2029.[Fox News]
- Bill author Tina McKinnor says she is deeply disappointed and will seek to reintroduce the measure in 2027.[Fox News]
Key facts
- Newsom vetoed AB 2186 on Sept. 30, citing fiscal uncertainty and an unknown scope for the proposed tax exclusion.[Fox News]
- AB 2186 would have exempted reparations benefits received in tax years 2028 through 2032 from California personal income tax.[Fox News]
- AB 2186 defined a reparations benefit as any monetary payment, grant, trust distribution, debt forgiveness, or other compensation provided through a qualifying program.[Fox News]
- McKinnor said reparations payments compensate for generations of injustice, discrimination and economic harm, and should not be taxed back.[Fox News]
- Newsom signed AB 2599, which covers businesses with over $100 million in annual worldwide gross receipts existing on or before Dec. 31, 1964.[Fox News]
- Covered companies must submit sworn affidavits under penalty of perjury on historical searches, with first affidavits due January 2029 once the Legislature funds the program.[Fox News]
What remains uncertain
- The full scope of the proposed tax exclusion is unknown, according to Newsom's veto message as reported by Fox News.[Fox News]
- AB 2599 obligations apply only once the Legislature funds the requirement, so the timing remains uncertain.[Fox News]
- McKinnor's plan to reintroduce the bill in 2027 depends on colleagues and the new governor, and no timeline is confirmed.[Fox News]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.