Bill To Exempt Military Pensions From Income Tax Draws Broad Support
Wednesday, March 4, 2015
Augusta – The Joint Standing Committee on Taxation threw their preliminary support behind a bill to provide an income tax exemption for pension benefits received under a military retirement plan, including survivor benefits.
LD 280 “An Act To Exempt Military Pensions and Survivor Benefits from Maine Income Tax” is sponsored by Rep. Phyllis Ginzler (R) from Bridgton sponsored the bill and presented it at a public hearing held by the Taxation Committee this morning. If passed, the law would apply to the tax years beginning on or after January 1, 2015.
In addition to honoring those who served our country, with the conflicts winding down in Afghanistan and Iraq, this measure would also help to attract many of the younger, newly-retired veterans to Maine’s workforce.
“Exempting these pensions from income tax is the least we can do for these brave men and women,” Rep. Ginzler said. “These are exactly the type of people we want to attract to Maine to live, work or start a business. These are highly skilled people that are sorely needed here and would make a great addition to our state.”
A number of veterans took time out of their days to testify in support of the legislation with no one speaking in opposition. Members of the Taxation Committee voiced unanimous support for the measure and a work session will more than likely be held next week where the measure is likely to be tabled until Governor LePage’s 2-year budget proposal is ironed out. There is a provision in the proposed biennial budget that would also exempt military pensions from state income tax. If that passes as part of the budget, Rep. Ginzler’s bill would become redundant and will likely be killed in committee. If the provision does not pass as part of the budget, members on the Taxation Committee have already expressed a willingness to advance Rep. Ginzler’s bill on its own.