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Senate approves one-year income-tax break for Guard and reservists called to active duty
Summary
The Senate passed SB4002 on a voice-and-roll procedure to exempt certain active-duty pay for National Guard and reservists called to active duty, adopting two amendments that limit the measure to a one-year appropriation and clarify covered reserve components.
The Utah State Senate on Sept. 15 approved Senate Bill 4,002 to exempt from state income tax certain active-duty pay received by members of the National Guard and reserve components who are called to active duty.
Sponsor Senator Bramble described the bill as intended "to send a very clear message to the brave men and women who serve in the National Guard and the Reserve," saying many families face substantial financial stress when members are activated. He said the measure had passed the Senate in prior sessions but funding constraints previously prevented enactment.
The Senate adopted two amendments: Amendment 1 limits the measure to a one-year, one-time appropriation so the fiscal implications can be evaluated during the general session debate on appropriations; Amendment 2 clarifies the covered forces as the Army Reserve, Navy Reserve, Air Force Reserve, Marine Reserves, the U.S. Air National Guard and the National Guard. Bramble said the expected benefit to an eligible family would be up to about $2,500 — roughly "$200 a month" in tax relief for qualifying months.
Under suspension of the rules the Senate recorded final passage by roll call: 27 aye, 0 nay, 2 absent. Before adjourning, the Senate also adopted formal intent language clarifying that the benefits apply only to members of the National Guard and other reserve components and that the measure reflects the legislature's policy judgment about the disruption activations cause to civilian employment.
The bill will be referred to the House for its consideration.
