A California lawmaker is proposing legislation to ensure that reparations payments to Black residents are not subject to taxation. Assemblymember Tina McKinnor, a Democrat representing Inglewood, stated that the bill aims to establish protections for these payments, emphasizing that reparations are intended to address historical injustices and should not be diminished by taxes.
Assembly Bill 2186, introduced by McKinnor, would exempt future reparations payments from the state’s personal income taxes, contingent on the approval of federal, state, or local reparations programs. The bill specifies that for taxable years beginning on or after January 1, 2027, gross income will not include any reparations benefits or payments received during that year.
The bill defines a reparations benefit or payment as any monetary payment, grant, trust distribution, debt forgiveness, or other financial compensation. The measure has been sent to the California Senate for further review, and if approved, it will be considered by Governor Gavin Newsom. McKinnor stated that California is preparing for the implementation of reparations programs and aims to ensure that recipients receive the full benefits of these efforts.
Other cities and states are also exploring various forms of reparations, including direct cash payments, to address historical injustices and discrimination. California was the first state in the U.S. to establish a reparations commission to study the history of slavery and recommend compensation for Black Americans. However, the future of reparations in California remains uncertain, as Governor Newsom has previously rejected several related bills, and potential successors in the gubernatorial race do not appear to support reparations.
