|Date Requested:March 03, 2005
Time Requested:01:16 PM
| FUND(S) |
General Revenue Fund
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
| The stated purpose of this bill is to exempt military retirement pensions from income tax.
According to our interpretation, passage of this bill would reduce General Revenue Fund collections by roughly $300,000 per year beginning in Fiscal Year 2007.
There would be no additional administrative costs to the Tax Department associated with passage of this bill.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||0||0|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||-300,000|
3. Explanation of above estimates (including long-range effect):
This bill increases existing military pension income exclusions from up to $22,000 per year to the full amount of pension benefits. The provisions of the bill apply to military retirement income received after December 31, 2005. Thus, the first reduction in State revenue will likely occur in Fiscal year 2007.
Passage of this bill would result in a decrease in General Revenue Fund collections of roughly $300,000 per year beginning in Fiscal Year 2007.