Committee advances bill to exempt part of military retirement pay from Georgia income tax

Representative Ballard presented a bill (LC501219S) that would exempt part of military retirement pay from Georgia income tax. The proposal phases in an exemption of up to $35,000 beginning in 2028 and up to $65,000 beginning in 2030 for military retirees under age 65.

“...we have an opportunity to enhance our state's economic development, workforce retention, and veteran support,” Representative Ballard said, framing the change as a tool to attract and retain highly skilled veterans who may otherwise relocate to states with more favorable tax treatment of military retirement income.

The nut graf: supporters said many states exempt some or all military retirement income and that Georgia’s partial exemption would make the state more competitive for retirees who frequently have decades of additional working life; sponsors acknowledged a fiscal note but argued it understates downstream income-tax revenue when retirees work in the civilian economy.

Members expressed support and asked fiscal questions. One member noted that some military retirees are relatively young and can produce years of taxable civilian earnings after retirement; Ballard cited anecdotal examples of retired service members who worked long civilian careers after military service.

The committee voted on a procedural motion to waive the rules and give the bill a second reading; the sponsor announced a second and, with no objection, the committee advanced the bill to the full committee by voice vote. The meeting record shows the motion passed and the bill was moved forward for full committee consideration.

Ending: The bill will proceed to the full committee for further consideration and fiscal review.