Bill > S0118

This bill proposes to exempt all military retirement income and military survivor income received by surviving spouses or dependents from income tax in Vermont. The key provisions of the bill are: (1) amending the definition of "taxable income" to exclude U.S. military retirement income and U.S. military survivor benefit income; (2) removing the existing limitation on the exclusion of U.S. military retirement income; and (3) stating that the purpose of the exemption is to honor and thank military retirees and their families for their military service. The bill would take effect retroactively on January 1, 2023 and apply to taxable years beginning on and after that date.