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Utah Senate approves retirement income tax changes favoring Social Security recipients and military retirees
Summary
The Utah Senate passed Senate Bill 11 on Jan. 20, 2021, to exempt or reduce state income tax on certain retirement and Social Security income, including a provision for military retirement pay; the measure passed 28–0 and will go to the House.
The Utah Senate on Jan. 20 passed Senate Bill 11, a measure to reduce or eliminate state income tax on certain retirement incomes, including Social Security benefits and military retirement pay.
Sponsor Sen. Harper said the bill represents part of a broader tax-cut package and accounts for about $43,000,000 of an $80,000,000 set-aside for ongoing tax reductions. "It benefits those individuals who make $48,000 or less on Social Security income, reducing or eliminating the tax on that," Harper said, adding the bill also exempts military retirement income from state income tax.
Sen. Davis asked for clarification about the threshold, and Harper confirmed the bill applies to $48,000 of Social Security income for a couple and $24,000 for an individual. Sen. Stevenson, among others, commended the military-retiree exemption as a way to retain trained workers in Utah.
Harper moved the bill for final passage. On a roll-call vote the Senate recorded 28 yeas, 0 nays and 1 absent; President Adams announced that the bill passed and will be transmitted to the House for consideration.
The bill, as described on the floor, targets retirement income tax treatment for low- to moderate-income Social Security recipients and military retirees and is intended to be part of subsequent complementary measures from both chambers.
