Virginia House Bill HB1069

Virginia 2022 Regular Session

• Introduced: 1/12/22
• Refer: 1/12/22

Caption

Income tax, state; veteran retirement compensation.

Impact

If enacted, HB1069 would directly affect the income tax laws in Virginia by expanding the categories of income that are exempt from state taxes. Specifically, it entitles veterans to subtract up to $40,000 of their annual retirement compensation from their taxable income. This adjustment could significantly enhance the disposable income of veterans, making it easier for them to reintegrate into civilian life and support themselves and their families.

Summary

House Bill 1069 aims to amend the Virginia code concerning state income tax and specifically addresses the taxation of retirement compensation received by veterans. This bill proposes to allow veterans to subtract a portion of their retirement benefits from their taxable income, thereby reducing the overall tax burden for those who have served in the military. The intention behind this legislative change is to provide financial relief and recognition to veterans, acknowledging their service and the challenges they may face after retiring from active duty.

Contention

There was some debate among legislators regarding the potential financial implications of this bill. Supporters argue that the tax relief provided by this bill is essential for veterans adjusting to post-military life, while opponents express concerns about the impact on state revenues. Critics of the bill highlight that, although the goal is to honor veterans, such tax exemptions could place additional financial pressures on the state's budget, especially if similar measures are sought for other groups in the future.