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Committee hears bill to broaden military retirement income subtraction for post-9/11 retirees
Summary
Senate Bill 93 would expand an existing Montana subtraction for military retirement by changing residency-date requirements and removing a five-year limit and expiration; proponents said the change would attract retirees and workforce skills, while no opponents testified at the hearing.
Senate Bill 93 would amend Montana law to change the residency eligibility date for a military retirement income subtraction, remove a five-year limit and eliminate the scheduled expiration, the bill sponsor told the House Taxation Committee.
Proponents said the change would make Montana more attractive to military retirees and their families. "We think broadening the scope of this benefit by allowing more post-9/11 vets and removing the five-year limitation will make this more attractive for retirees to choose Montana," Dan Brooks of the Billings Chamber of Commerce said.
Mike Talia, a Helena attorney testifying for the Montana National Guard Association and the American Legion Department of Montana, said the exemption is a modest workforce-development incentive. "This bill is a small incentive. It doesn't do as much as many other states do, but it would sure be nice to see how it works," Talia said, describing how retired military personnel often bring skills valued by employers.
Department of Revenue staff attended as informational witnesses to answer questions about the fiscal note and administration; Aaron McNay and Rachel Milne said they would assist with implementation questions.
There were no opponents who testified in the committee record for SB 93 during this hearing. The bill drew questions from several representatives about residency rules and distinctions between types of military retirement payments, and proponents explained differences in active-duty and National Guard reserve retirements and timing of when retirees draw pension payments.
Sen. Fuller, the sponsor, closed by citing Montana's constitutional language that allows the legislature to give special consideration to veterans and said the proposal aligns with other states' practices. No committee action was recorded during this hearing in the transcript.
