Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Military Pension Tax Subtraction topic
No spam. Unsubscribe anytime.
Committee advances military pension tax subtraction to the Senate floor with a due‑pass recommendation
Summary
Senate Bill 225A would create a personal income tax subtraction for military pension income — exempting up to $17,500 (indexed) for taxpayers meeting an age requirement — and was moved to the floor with a due‑pass recommendation; fiscal staff estimated a roughly $13.3 million revenue loss in 2025–27.
Committee staff introduced Senate Bill 225A during the May 28 work session and summarized the proposal to create a personal income tax subtraction for military pension income.
Staff explained: “It does require a taxpayer to be 60 63 years of age or older. And if they are receiving military pension income, it would exempt up to the first $17,500 in that income. And then that $17,500 amount gets indexed to inflation in later years.” The presentation included a fiscal estimate described as “minimal” for the near term and an expected revenue loss of about $13,300,000 in the 2025–27 biennium, with the amount growing in later years as the indexed subtraction increases.
Senators offered support in committee. Senator Taylor thanked sponsors and said she was “very much in support” and emphasized gratitude for military service. Senator Patterson noted testimony indicating other states offer similar benefits and that the measure would make Oregon more friendly to retired service members.
Vice Chair McLean moved the bill to the Senate floor with a due‑pass recommendation. The motion passed by roll call and the committee assigned Senator Meek as carrier.
The committee advanced SB 225A with a due‑pass recommendation; the bill will proceed to the Senate floor for further consideration.
