MOAA members in North Carolina are strategically maneuvering to advance legislation that would exempt military pension from state income tax.
Col. Ihor “Iggi” Husar, USAR (Ret), first vice president of MOAA’s North Carolina Council of Chapters, said all 15 state chapters are tracking two bills that would eliminate military pension from state income tax. He has led efforts to connect chapter members to the lawmakers in their districts to build more meaningful connections in hopes of passing the legislation.
“It’s much better to have a constituent calling to make an appointment to do advocacy,” Husar said. “It’s more effective this way.”
Read the story here: https://www.moaa.org/content/publications-and-media/news-articles/2021-news-articles/state-tax-update-the-latest-from-4-states-on-exempting-military-pensions/
Maryland MOAA members are working vigorously to pass exemptions on the taxation of military retirement pay in their state.
Senate Bill 574 and accompanying House Bill 734, both introduced Jan. 26, would grant a partial state tax exemption for military retirement in the 2021 tax year -- either $15,000 or 50% of the military retirement income, whichever is greater. For the 2022 tax year and beyond, the exemption would extend to all military retirement income received.
Read the story here: https://www.moaa.org/content/publications-and-media/news-articles/2021-news-articles/state-tax-update-news-from-5-states-on-efforts-to-exempt-military-retired-pay/
Military retirees in Nebraska can celebrate progress on a tax exemption two decades in the making.
Nebraska Gov. Pete Ricketts has signed a bill that grants a 50% exemption on state income tax for military retirees. The exemption marks progress on efforts that began in 2000 with MOAA’s Heartland of America Chapter and the Nebraska Veterans Coalition.
“There is a long history of Nebraska trying to get an exemption,” said Brig. Gen. Paul Cohen, USAF (Ret), who helped work on the legislation for the Heartland of America Chapter.
The North Carolina MOAA chapters are among several groups leading a fight to exempt the retirement pay of all government employees, including servicemembers, from that state's income tax.
The bill would even the playing field for those retirees, some of whom already receive an exemption under the so-called “Bailey Amendment,” a North Carolina Supreme Court decision to exempt state taxes for government employees who served at least five years before 1989. This is the latest effort to equalize the exemption.
“I think we have the 'haves' and the 'have nots,'” said Col. Jeri Graham, USA (Ret), who serves on MOAA's board of directors. “It's a fairness thing. We have a lot of people in North Carolina that were able to get that benefit. Now we have all the new people that are retiring from all those federal, state, and local jobs that don't have that benefit. We're trying to equalize that benefit for everyone.”
The Equal Tax Treatment of Government Retirees bill is backed by the several groups working as a coalition called The 4th Branch. The coalition was formed in 1995 and earned nonprofit status in 2000.
The bill is expected to be introduced during the state's next legislative session. Meanwhile, Graham is calling on all government retirees in North Carolina, as well as current military and federal employees, to sign a petition in support of the bill and to contact their state legislators and ask for their support.
Read the story here: http://www.moaa.org/Content/Publications-and-Media/News-Articles/2018-News-Articles/North-Carolina-MOAA-Chapter-Part-of-Fight-to-Exempt-Military,-Other-Government-Retirement-Pay-from-State-Income-Tax.aspx
More special operators could receive a break on taxes next year.
The Special Operations Forces Tax Cut Act would grant tax breaks to troops based on their mission, rather than location. The bill would benefit troops who deploy outside of combat zones not formally recognized in the IRS' Combat Zone Tax Exclusion section.
Read the story here: http://www.moaa.org/Content/Publications-and-Media/News-Articles/2018-News-Articles/Tax-Break-in-the-Works-for-Special-Operations-Forces.aspx