Bill to lower retired veterans' taxes passes committee in Raleigh

Mar. 12—RALEIGH — Wednesday afternoon, HB83, Eliminate Income Tax for Military Retirees, received a favorable report from its first committee in the N.C. General Assembly.

If signed into law, this bill would allow a retired U.S. Armed Forces member, who has served at least 20 years, to deduct the amount received from the federal government as retirement pay from their taxable income.

The deduction would also apply to payments to a beneficiary of a retired member.

The bill was filed Feb.15th by Rep. John Szoka of Cumberland County, whose district includes the Fort Bragg area. Szoka is retired from the Army but explained in committee that this bill would not apply to himself and other veterans who fall under the Bailey Decision.

The Bailey Decision was a N.C. Supreme Court ruling that already allowed veterans who met certain criteria to exclude federal retirement pay on their income taxes.

In committee, Szoka emphasized the importance of this bill from an economic standpoint, adding how those coming out of the military are valued by employers in North Carolina because of their extensive training and education in a variety of fields.

The bill received a nearly unanimous favorable report from the Homeland Security, Military and Veterans Affairs Committee. One member of that committee, Rep. Jake Johnson who serves Polk, Henderson and Transylvania counties, voted in favor of the bill.

"I think a lot of politicians talk the talk about supporting our veterans, but it is time to walk the walk and make a change that will have a positive impact on our veterans and their loved ones by letting them keep more of their hard-earned money," he said.

"It is the least we can do to thank them for the sacrifice they have made defending our state and nation. I will be a proud 'yes' vote."

From here, the bill will likely be heard in two more committees before it receives a floor vote in the House, Johnson said.

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