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Panel hears bill to let tax commissioner use CPI to set military retirement COLA; members raise accountability concerns
Summary
Senator Rhett told the committee he wants the tax commissioner to consolidate and determine cost-of-living adjustments for military retirement pay using CPI; senators expressed concern about delegating that decision to an unelected official and requested further work and fiscal notes.
Senator Rhett presented a bill to consolidate authority for determining cost-of-living adjustments (COLA) for military retirement pay in the state. Under the draft, the tax commissioner would be authorized to establish rules and could use the Department of Labor’s Consumer Price Index to determine adjustments.
"Basically, the commissioner may use the consumer price index as reported by the Department of Labor to determine the cost of living adjustments," the sponsor said, describing the measure as an efficiency and consolidation effort that would not, in the sponsor's view, increase costs but streamline who compiles input.
Several senators said they were sympathetic to the sponsor's intent to support veterans but worried about ceding the eventual decision to an unelected official. "I'd be concerned about how they would determine that... I'd think it would be incumbent upon the legislature to make that decision," Senator Alers said, arguing the legislature should retain the authority to raise exemptions or make changes based on the numbers.
The chair said staff will continue working on the bill and engage with relevant parties; a fiscal note is in the committee folder for reference. No vote was taken.
