Income tax; exclude active duty military compensation received by a resident while stationed out of state.
Impact
If enacted, this bill is expected to have a significant financial impact on those service members who have been subject to state income taxes while stationed away. Supporters argue that the exclusion of military pay aligns with broader practices nationally and honors the sacrifices made by these individuals and their families. Additionally, it is posited that this change might incentivize military personnel to maintain their residency in Mississippi given the tax benefits associated with such a decision.
Summary
House Bill 29 seeks to amend Section 27-7-15 of the Mississippi Code of 1972, revising the definition of 'gross income' for state income tax purposes. The key change involves excluding compensation received by residents of Mississippi who serve in active federal duty as members of the Armed Forces while stationed outside the state. This bill reflects an effort to alleviate the tax burdens on military personnel who are currently serving away from their home state, recognizing their service during potential times of war or conflict.
Contention
Despite the proposed benefits, there may be points of contention regarding the potential loss of tax revenue for the state as a result of this bill. Critics may argue that while the intention is to support military service members, such exemptions could set a precedent for further income exclusions that may undermine the state’s capacity to fund essential services. The discussions around HB29 might center on balancing the welfare of military personnel with the financial implications for state revenue and public service funding.
Income tax; exclude forgiven, cancelled or discharged federal student loan debt under the Public Service Loan Forgiveness Program from the definition of "gross income".