California Assemblymember Tina McKinnor introduced Assembly Bill 2186, which would exempt reparations payments from state personal income taxes between 2027 and 2032. The bill aims to ensure recipients receive the full benefit of reparations efforts, which are intended to repair harm.
This legislation could impact the net financial benefit received by individuals participating in future reparations programs in California, ensuring they receive the full intended compensation without state tax deductions.
California Assemblymember Tina McKinnor has introduced Assembly Bill 2186, a legislative measure aimed at protecting reparations payments to Black residents from state taxation. The bill, if enacted, would ensure that any reparations benefits or payments received by taxpayers are not subject to California's personal income tax. This exemption is proposed to be in effect for taxable years beginning on or after January 1, 2027, and before January 1, 2032. The definition of a reparations benefit or payment includes monetary payments, grants, trust distributions, debt forgiveness, or other forms of financial compensation. McKinnor stated that reparations are intended to repair harm and should not be partially reclaimed through taxation. California was the first state to establish a reparations commission to study and recommend compensation for Black Americans for slavery. The bill has moved to the California Senate for further review and would require the governor's signature to become law. Similar efforts for reparations are underway at the federal level and in other cities and states across the U.S., with some Black residents in Evanston, Illinois, having already received housing-related payments.