Senate Finance & Revenue - 02.01.2023
The committee received testimony on legislation to exempt military retirement pay from the state income tax.
On Wednesday, the Senate Finance & Revenue Committee held hearings on two proposals to exempt retirement pay or pension income for military veterans. According to Sen. Janeen Sollman (D-Hillsboro), two-thirds of states do not impose their income taxes on military retirement pay and most others only tax part of that income. Under existing law, Oregon includes military income in its tax base but allows an exemption for veterans who served before 1991. Over time, all veterans will pay income tax on their military retirement pay.