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Committee reconsiders military retirement tax bill; amended measure fails and is tabled

House Taxation Committee · March 19, 2025
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Summary

The House Taxation Committee reconsidered Senate Bill 93 (changes to income tax treatment for retired military members), adopted two amendments including a restored five‑year eligibility window, but the twice‑amended bill failed a final committee vote and was subsequently tabled by the committee.

The House Taxation Committee took up Senate Bill 93, a measure revising income tax treatment for retired military members, and debated amendments intended to narrow eligibility and reduce the bill’s fiscal impact.

Proponents said narrowing the look‑back period and reinstating a five‑year residency/recruitment window would reduce the fiscal note and better target the benefit as a recruitment tool. Opponents said the bill either expanded an existing program too broadly or risked granting preferential treatment to one group of taxpayers.

Committee members adopted two amendments (including a conceptual amendment to restore a five‑year eligible window) during debate. On the final roll call vote for SB 93 as twice amended, the committee recorded 9 ayes and 12 noes and the bill failed to pass. A substitute motion to table SB 93 as twice amended was then made and the committee tabled the measure by voice vote.

Committee members noted the bill's fiscal note concerns and stressed that appropriations and further targeting would be required to move the policy forward.