Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Military Pay Withholding topic
No spam. Unsubscribe anytime.
Committee advances bill to stop automatic tax withholding from exempt military pay
Summary
The Senate Finance and Tax Committee voted to give Senate Bill 2047 a due-pass recommendation after hearing from the tax commissioner that the bill would prevent income tax from being automatically withheld from military pay that state law now exempts.
Senate Bill 2047 — which would prevent automatic state income-tax withholding from military pay exempted by the Legislature in 2023 — received a due-pass recommendation from the Senate Finance and Tax Committee.
The measure, presented to the committee by Brian Krasches, tax commissioner for the state, would create "an exception to the income tax withholding requirement, providing that tax cannot be withheld from military pay unless the service member specifically requests that tax to be withheld," he told the committee. Krasches said the change would prevent unnecessary withholding and the subsequent refund process for pay the Legislature already exempted in 2023 via Senate Bill 2293.
Why it matters: Committee members said the change would let service members receive exempt pay immediately rather than waiting for refunds. Krasches said the bill would take effect for taxable years beginning after Dec. 31, 2025, but he also said the department could support an earlier effective date if the committee wished.
Committee discussion focused on which service members qualify. Chairman Mark Weber asked whether the exemption applies only to full‑time Guard members or also to part‑time reservists and traditional Guard members who have civilian jobs. Krasches said he would follow up to confirm the department's interpretation but believed part‑time members would qualify for exempt pay for the periods they serve. Senator Dean Rummel asked whether the department would provide a form for members to document a request to withhold; Krasches said the department would create a form and work with payroll specialists to implement the change.
Formal action: Senator Dale Patton moved a due‑pass recommendation; the motion was seconded and the clerk recorded the committee vote as unanimous in favor (6–0). Senator Michelle Powers volunteered to carry the bill to the floor.
The committee closed the hearing after receiving no opposing testimony and moved the bill forward for further consideration.
