Military retirees to get state tax break-Ohio

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Military retirees to get state tax break
Strickland to sign legislation exempting retirement pay from state income tax.
By William Hershey
Staff Writer
Thursday, December 13, 2007
COLUMBUS — Relief from the state income tax is on the way for approximately 38,640 military retirees in Ohio .
Gov. Ted Strickland plans to sign legislation passed unanimously Wednesday by the Ohio House and Senate exempting military retirement pay from the state income tax, Keith Dailey, Strickland's spokesman, said.
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"He's been supportive of that effort, but he will need to find a way to pay for it," Dailey said.
The legislation was part of a flurry of bills passed as the legislature finished for the year. Lawmakers are to return in early January.
The tax break for veterans is expected to result in a revenue loss of $12 million to $22 million in the second year of the current state budget, which starts July 1, according to a Legislative Service Commission analysis.
House Speaker Jon Husted, R-Kettering, championed the legislation to honor veterans and make the state more attractive to military retirees with skills needed to boost the economy. He has said 35 other states provide military retirees with relief from state income taxes.
The legislation had strong Dayton Area Chamber of Commerce support.
"Military retirees have a choice — we want them to choose Ohio ," said Dan Bigelow, chairman of the chamber's Military and Federal Government Affairs Committee.
The House passed its version of the bill last month. The Senate acted Wednesday. The House then agreed with the amended Senate version before sending it to Strickland.
Sen. Steve Austria, R-Beavercreek, said the bill is especially important for the Dayton area because it could help military personnel at Wright Patterson Air Force Base decide to stay in Ohio when they retire. Chris Kershner, vice president for public policy and economic development at the Dayton chamber, has said an estimated 26,000 retired military live within an hour's drive of the base.
The bill includes other benefits for veterans, active-duty military and members of the National Guard and reservists.


Hal Cleveland, U.S. Navy, (Ret.)

"Caring for veterans must be viewed as a continuing cost of war."

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The bill eliminates the stateÃÔ income tax on military pensions.
The proposal would exempt the retirement benefits of approximately 38,640 retired military personnel in Ohio. Based on 2005 data, the bill could save Ohio military retirees more than $23 million.
Currently 35 other states across the nation exempt some or all military pensions from state income taxes.
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