Virginia Senate Bill SB662

Virginia 2024 Regular Session

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

Caption

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

Impact

The bill's impact would be particularly significant for retired state police officers, who may face unique financial challenges post-retirement. By allowing them to exclude a portion of their retirement benefits from taxable income, the bill aims to support their financial stability. This change could result in increased disposable income for those affected, contributing positively to their economic well-being as well as potentially impacting state revenue from income tax collection.

Summary

Senate Bill 662 proposes modifications to the Virginia income tax system by introducing a subtraction for state police retirement benefits. Specifically, the bill allows for a subtraction of up to $10,000 of state police retirement benefits for individuals aged 55 and older. This initiative aims to provide financial relief to retired state police officers, recognizing their service and potentially easing their tax burden in retirement.

Contention

However, the bill may also encounter opposition as discussions around state budget allocations and tax policy reform unfold. Critics could argue that the tax exemption for state police retirement benefits could create disparities among different public service professions, leading to discussions about equity in tax policy. There could also be concerns regarding the potential impact on state revenues and funding for essential services if more exemptions are adopted in future proposals.