The legislation would create a tax exemption for veterans who move and stay in Kentucky
First Year Income Deduction for Retired Veterans Who Stay or Move Immediately to Retired Kentucky
FRANKFURT, KY. (WTVQ) – State Representative Ken Fleming has tabled pre-existing legislation that would establish a tax exemption for Kentucky veterans after they retire from the military. The measure is co-sponsored by Representative Walker Thomas and Representative DJ Johnson.
“These men and women have dedicated their lives to the service of their country,” said Fleming. “Now it is our responsibility to make sure that they receive the benefits that they have rightfully earned. “
BR 971 would create a first-year income deduction for retired veterans who stay or move to Kentucky immediately upon retirement. The bill would require permanent residence in the state for at least three consecutive years to remain eligible. In addition to supporting Kentucky veterans, the sponsors note that the measure has the potential for significant economic and workforce development statewide.
“They are highly skilled and hardworking people,” said Representative Thomas. “They bring expertise and experience that would be invaluable to our state. “
Of the 41 states that tax personal income, there are currently 23 that do not tax military retirement allowances. Kentucky is one of the other states that include partial exemptions, exempting only veterans who retired before 1997 and whose retirement allowance does not exceed $ 31,110. This measure would grant an exemption to all veterans who retire or move to Kentucky, regardless of income.
“Veterans have a lot of options as to where to retire,” said Rep. Johnson. “We want Kentucky to be the best option for them.”
BR 971 can be viewed on the Legislative Research Commission website at www.legislature.ky.gov or by clicking here.