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S 5104

Exempts qualified military benefits of veterans from inclusion in a resident's adjusted gross income

2025 Regular Session Introduced by Pete Harckham

Exempts qualified military benefits of veterans from being included in a resident’s adjusted gross income for state income tax purposes.

REFERRED TO BUDGET AND REVENUE
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Bill Summary · S 5104

Summary of S 5104 — Exempts qualified military benefits of veterans from inclusion in a resident's adjusted gross income

Overview

S 5104 is a Senate bill introduced on February 19, 2025, designed to exclude certain military benefits received by veterans from a resident’s adjusted gross income (AGI) for state tax purposes. The bill is currently in the committee stage, having been referred to the Budget and Revenue committee. Pete Harckham is listed as the primary sponsor. Related bills from prior sessions (S 8283 and S 5391) indicate ongoing legislative interest in veterans’ tax relief.

Purpose and Intent

  • To provide targeted tax relief for veterans by ensuring that qualified military benefits are not counted as part of a resident’s AGI for state income tax purposes.
  • Align state tax policy with the objective of recognizing and supporting veterans who receive military benefits.

Key Provisions (as indicated by the title)

  • Exemption of “qualified military benefits of veterans” from inclusion in a resident’s adjusted gross income.
  • The bill would modify how certain veterans’ benefits are treated in the state income tax calculation, effectively reducing taxable income for affected veterans.
  • The term “qualified military benefits” would be defined within the bill (or by cross-referenced definitions in statute) to determine which benefits are eligible for the exemption. The exact scope (which benefits qualify, such as retirement pay, disability benefits, survivor benefits, etc.) will be specified in the enacted text.

Affected Parties and Impacts

  • Primary beneficiaries: Veterans who are residents of the state and receive qualifying military benefits.
  • Fiscal/State Revenue: The exemption could reduce state personal income tax revenue relative to current law, depending on how many residents qualify and the value of the benefits exempted. A fiscal note or revenue impact analysis would typically accompany the bill during committee review.

Procedural and Timeline Aspects

  • Introduced: February 19, 2025.
  • Current status: Referred to Budget and Revenue (committee referral). No further actions listed in the provided information.
  • If advanced, the bill would typically undergo committee hearings, potential amendments, and floor consideration before enactment. The exact effective date and any transition provisions would be specified in the final bill language.

Related Legislation

  • S 8283 (prior-session)
  • S 5391 (prior-session)
  • These related measures suggest prior interest in veterans’ income tax relief and could inform potential amendments or companion proposals.

Notes

  • Specific definitions, eligibility criteria, and the effective date are not provided in the available information. The final text will clarify the scope of benefits covered, any phase-in provisions, and administrative details for implementing the exemption.

Compiled from official sources — confirm details with the bill’s official record.

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