Vermont House Bill H0026

Vermont 2023-2024 Regular Session

• Introduced: 1/10/23
• Refer: 1/10/23

Caption

An act relating to an income tax exemption for members of the National Guard

Impact

The implementation of H0026 is set to have a notable effect on state tax laws. By exempting the subsistence and quarters allowance from taxation, it aligns with ongoing efforts to support military personnel and could enhance the recruitment and retention of members within the National Guard. This exemption could potentially encourage more individuals to join or remain in the National Guard by lessening their financial burden, which is particularly valuable given the distinct challenges military service entails.

Summary

House Bill 0026 proposes an income tax exemption for members of the National Guard regarding the state active duty subsistence and quarters allowance in Vermont. The bill aims to amend existing law to ensure that these financial compensations are not subjected to state income tax, thus providing a financial relief mechanism specifically tailored for active-duty National Guard personnel. This legislative move is intended to acknowledge the service and commitment of these individuals while providing them with equitable treatment regarding their financial obligations.

Contention

Notably, while the bill enjoys support from various lawmakers who advocate for military personnel benefits, some discussions may arise regarding the overall impact on state revenue. The exemption could lead to reduced tax income for the state, which might be a point of contention among legislators who prioritize fiscal responsibility. However, proponents argue that providing such exemptions is a moral obligation and could ultimately benefit the state through enhanced military service and community support, outweighing any short-term financial drawbacks.