Reps. Kevin McDugle, R-Broken Arrow, Tammy Townley, R-Ardmore, and Robert Manger, R-Oklahoma City, last month celebrated the House passing their bill giving Oklahoma veterans a full tax exemption on the retirement benefits they receive as a result. of their service.
Internal bill 3693 would maintain the current exemption until December 31, 2022. Under the legislation, veterans would receive a 100% tax exemption on their retirement benefits beginning January 1, 2023.
Currently, veterans of the US Armed Forces enjoy tax exemptions of up to 75% or $10,000 of the retirement benefits they receive from any component of the US Armed Forces.
“The biggest request that I received from the aerospace industry and other business sectors during the interim study of companies that we conducted was that we do what we can to keep veterans in the Oklahoma State,” McDugle said.
“This bill allows us to keep our retired veterans and their families in our state where they can continue to be a great addition to Oklahoma’s workforce.
Rep. Townley said, “We want to inspire people leaving military service at our bases to choose to stay in Oklahoma.
“Our veterans possess a wealth of knowledge in their career fields and often choose to enter civilian employment after retiring from service. With veteran-friendly retirement benefits, they will choose to stay in Oklahoma, fill our workforce gaps, and contribute to their community and our state.
Rep. Manger, who sits on the House Military Affairs and Veterans Affairs Committee, said in a press release, “This bill is just one more way to thank those brave individuals who have served our country.
“Every little bit helps these heroes, and I’m glad we’re taking steps to make sure our military men and women get the respect and treatment they deserve.”
End of March, HB 3693 went 88-0 in the House and thus became eligible to be heard in the Senate.
A House staff tax analysis released on March 24 projected a zero tax impact for fiscal year 2023. For fiscal year 2024, a net reduction of $5.677 million in state tax revenue is projected.
In the state senate, state senator Julie Daniels, R-Bartlesville, is the lead author.