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Committee tables bill to exempt military retirement from state income tax amid fiscal concerns

Montana House Taxation Committee

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Summary

Representative Nellie Nicholl sponsored HB 652 to eliminate state income tax on military retirement pay; supporters highlighted veterans' economic contributions while opponents warned of regressivity and a fiscal cost the budget center estimated at roughly $15 million per year. The committee tabled the bill 20–1.

Representative Nellie Nicholl opened HB 652 urging the committee to eliminate state tax on military retirement and survivor benefits, arguing Montana should be competitive in attracting veterans and outlining veterans’ economic contributions to the state.

Opponents included Rose Bender of the Montana Budget and Policy…

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