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Legislative Revenue Office outlines revenue impacts of military pension tax exclusions
Summary
The Legislative Revenue Office presented estimates showing a full exclusion of military pension income could cost about $30 million in the first year (starting 2026); LRO highlighted Oregon’s 1991 federal‑service exemption proration and age/cohort effects on who benefits from proposals.
Kyle Easton of the Legislative Revenue Office presented the committee with background on how Oregon taxes military pension income and estimates for several proposals under discussion.
Easton explained Oregon’s personal income tax starts from the federal tax base and that VA benefits are already non‑taxable and therefore excluded from this presentation. A key feature of Oregon…
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