Committee hears bill to exempt Missouri National Guard state-active pay from income tax

State Senator Adam Schnelting told the House Committee on Ways and Means on a public hearing that Senate Bill 163 would add state active duty and state emergency duty pay to existing Missouri income-tax exemptions for National Guard service. "Pretty simple bill," Schnelting said. "Compensation for those of us in the army national guard or the air air national guard is, tax exempt. But years ago ... we overlooked a certain section of our income ... SED and SAD, which is state active duty, and state emergency duty pay. This would just roll this right in and exempt that income as well."

The measure would apply to pay earned while serving on state active duty or during state emergency responses, which the sponsor said his office unintentionally left out when the original exemption was enacted. "Sounds like a great opportunity to close that loophole," Representative Strickler said during questions. Schnelting said the change would aid recruitment and retention in the Missouri National Guard and ease tax burdens on families whose members serve during floods, fires or civil unrest. "Recruiting and retention is a big piece ... That has been an issue over the last few years," he said.

Committee members asked procedural questions; Schnelting said the bill passed the Senate unanimously and asked that the committee consider it for consent. No formal vote by the House committee was recorded during the hearing. The chair closed the public testimony portion after noting there were no witnesses in favor, opposed, or for informational purposes who had signed up to speak.

If advanced by the committee, the bill would move through the chamber’s legislative process; the hearing record does not include any enacted amendments or a committee vote.