California Lawmaker Seeks to Exempt Reparations from Taxation

A California legislator is pushing for a bill to ensure reparations payments to Black residents are not subject to taxation if the effort is implemented. Assemblymember Tina McKinnor, a Democrat from the Inglewood district, introduced the measure to prevent future reparations from being diminished by taxes.

In a statement about the bill, McKinnor explained, “For generations, descendants of formerly enslaved people have been denied both justice and economic opportunity. Reparations are meant to repair harm, not be partially taken back through taxation.”

The proposed Assembly Bill 2186 would shield reparations from the state’s personal income taxes, given that any federal, state, or local reparations programs receive approval. The bill applies to taxable years starting January 1, 2027, through January 1, 2032. Gross income would exclude any reparations received during these years.

Under the bill, a “reparations benefit or payment” covers monetary payments, grants, trust distributions, debt forgiveness, or other financial compensations. The legislation is currently under review in the California Senate and, if passed, will be considered by Governor Gavin Newsom.

“California is actively preparing for the implementation of reparations programs,” McKinnor stated. “We must ensure that recipients receive the full benefit of these efforts.”

In Evanston, Illinois, Black residents have received $25,000 each to offset housing costs as part of a reparations initiative. Meanwhile, on a wider scale, Progressive Representative Shri Thanedar, from Michigan, has revived efforts for federal reparations through a bill aiming to set up a commission on land reparations for descendants of slaves in the U.S.

A similar bill was introduced by former Representative Cori Bush of Missouri, although it did not progress in the GOP-led House in 2023. Various other states and cities are also exploring reparations in different forms, including direct cash payments or alternative compensations to address historical injustices.

California was the first among many in the U.S. to establish a reparations commission to examine historical injustices and recommend compensatory measures for Black Americans affected by slavery. However, the state’s reparations initiatives face uncertainty due to legal challenges and lack of gubernatorial support.

California Governor Gavin Newsom rejected several related bills to avoid potential legal problems. Additionally, none of his possible successors in the gubernatorial race have embraced reparations efforts. Lisa Holder, a civil rights lawyer and former member of California’s Reparations Task Force, acknowledged challenges in advancing reparations. Holder said, “You can’t legislate yourself out of 400 years of inequality and injustice. You have to do an entire body of laws to change the systems that have been disparately affecting Black folks for decades.”