Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Veterans Tax Exemption topic
No spam. Unsubscribe anytime.
Committee hears testimony in support of exempting military retirement pay from state income tax (HB 2050)
Summary
Lawmakers and dozens of public witnesses testified in favor of House Bill 2,050, which would exempt military retirement pay from Oregon state income tax; sponsors said the exemption would help retain veterans in Oregon but noted the measure has a fiscal impact that will be addressed in subsequent review.
The committee held a public hearing on House Bill 2,050, which would exempt from state income tax “all retirement pay or pension received for services in the armed forces,” LPRO staff said, and described two pending amendments: one to align the bill’s definition of veteran with statute and another to add surviving spouses to the exclusion.
Representative Emily McIntyre, a co-sponsor, said Kingsley Field in her district supplied repeated examples of service members who contribute extensively to local communities and who might leave the state after retirement because other states exempt military retirement pay. Rep. E. Warner Raschke, also a sponsor, told the committee the Klamath Basin has many military families and noted that neighboring states — California and Washington — offer tax advantages that can influence retirees’ choices.
Committee members questioned the scope of the exemption. Rep. Lewis clarified that the bill would exempt only military retirement pay and not pay earned from other civilian employment after retirement; the sponsors confirmed that the exemption would apply only to honorably discharged and retired veterans and (with an amendment under consideration) to surviving spouses. Members also asked for an estimate of statewide revenue impact; sponsors said they would supply numbers to the committee.
Several community witnesses testified in support. Heather Harder of the Klamath County Chamber of Commerce said the exemption would make Oregon “more attractive for veterans to stay, work, and retire here, filling critical workforce gaps, especially in rural areas like Klamath.” Joe Spindolini, chair of the Klamath County Chamber Government Affairs Committee, cited national comparisons and urged the committee to vote yes on the bill. Kevin Dial, a veteran and community veteran-organization leader, also testified in support. One caller, Adam Gudinski, said he supported the measure and argued it would help recruiting and retention. The committee did not vote on the bill at this hearing; sponsors said they would provide revenue estimates and data on how many other states exempt military retirement pay.
