Substitute for HB 137 adopts CPI adjustment for military retiree tax relief and is referred to Appropriations

Summary

The committee approved a substitute to HB 137 that replaces a large fixed-step reduction with an annual CPI-tied cost-of-living adjustment for military retiree pensions; the substitute was reported and referred to Appropriations (transcript records a report of 9 to 0 and substitute approval referred by a vote of 10 to 0).

Delegate Fagan explained a substitute to House Bill 137 that replaces the bill’s original multiyear, fixed-step tax reductions with an approach that ties relief for military retiree pensions to the consumer price index (CPI). He argued the substitute preserves benefit value for retirees while reducing projected general fund impacts and keeping Virginia competitive for veterans to retire in-state.

Committee members had no recorded public opposition during the hearing. The committee moved to report HB 137 and refer it to Appropriations; the chair recorded that the bill reports "9 to 0." Later in the same exchange the chair announced the substitute has been approved and referred to Appropriations by a vote of "10 to 0."