Virginia Senate Bill SB662

Virginia 2025 Regular Session

• Introduced: 1/16/24
• Refer: 1/16/24

Caption

Income tax, state; subtraction for state police retirement benefits.

Impact

The passage of SB662 would directly impact state income tax laws in Virginia by modifying the tax liabilities for a specific group of retired individuals. By instituting this subtraction, the bill aligns the state's tax policy more closely with those of other jurisdictions that offer similar benefits to retirees in law enforcement. This modification could improve the financial situation of retired state police officers and potentially attract more individuals to pursue careers in law enforcement, knowing that their retirement benefits will receive favorable tax treatment.

Summary

Senate Bill 662 proposes an amendment to the Code of Virginia concerning the taxation of income. Specifically, it introduces a subtraction from Virginia taxable income for state police retirement benefits. The bill aims to provide financial relief to retired state police officers by allowing them to exempt a portion of their retirement income from state income taxes. This reflects broader efforts to acknowledge the service of law enforcement personnel and offer them support as they transition into retirement.

Contention

During the discussions regarding SB662, points of contention emerged primarily concerning the financial implications of the proposed subtraction on state revenues. Critics expressed concerns that the bill could set a precedent for additional tax deductions for various public sector employees, leading to significant revenue losses for the state. Proponents, however, argued that the benefits outweigh the costs, emphasizing the importance of supporting those who have served in challenging and hazardous roles such as law enforcement.