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BILL AS INTRODUCED 2007-2008

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H.83

Introduced by Representatives Grad of Moretown, Brooks of Montpelier, Donahue of Northfield, Howrigan of Fairfield, Krawczyk of Bennington and Moran of Wardsboro

Referred to Committee on

Date:

Subject:  Taxation; income taxation; exemption for military retirement income

Statement of purpose:  This bill proposes to exempt from income taxation the first $5,000.00 of military retirement income.

AN ACT RELATING TO MILITARY PENSION INCOME TAX EXEMPTION

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  32 V.S.A. § 5823(a)(2) is amended to read:

(2)  Military pay for full-time active duty with the armed services earned outside the state; and the first $2,000.00 of military pay for unit training in the state to National Guard and United States Reserve personnel for whom the adjutant general or reserve component commander certifies that the taxpayer completed all unit training of his or her unit during the calendar year, and who has a federal adjusted gross income of less than $50,000.00; and the first $5,000.00 of military retirement pay.

Sec. 2.  32 V.S.A. § 5823(b)(3) is amended to read:

(3)  Wages, salaries, commissions, or other income (excluding military pay for full‑time active duty with the armed services and also excluding funds received through the federal armed forces educational loan repayment program under 10 U.S.C. chapters 109 and 1609; and also excluding the first $2,000.00 of military pay for unit training in the state to National Guard and United States Reserve personnel for whom the adjutant general or reserve component commander certifies that the taxpayer completed all unit training of his or her unit during the calendar year, and who has a federal adjusted gross income of less than $50,000.00; and also excluding the first $5,000.00 of military retirement pay) received with respect to services performed within this state; and also excluding income received for a dramatic performance in a commercial film production to the extent such income would be excluded from personal income taxation in the state of residence.

Sec. 3.  EFFECTIVE DATE

This act shall apply to taxable years 2007 and after.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us