Virginia House Bill HB2567

Virginia 2025 Regular Session

• Introduced: 1/12/25
• Refer: 1/12/25

Caption

Income tax, state; subtraction for military benefits received by members of uniformed services.

Impact

The evaluation mandated by HB2567 is intended to assess whether other states have implemented similar income tax benefits for military retirement income. This could potentially lead to a reassessment of Virginia's tax policies regarding military benefits, aligning them closer with other states that provide similar assistance. Additionally, the bill indicates a commitment to understanding how an extended tax benefit could impact the income levels of veterans and their surviving spouses, which may foster greater financial stability within this community.

Summary

House Bill 2567 aims to direct the Department of Taxation to evaluate the fiscal impacts of extending an income tax subtraction for military benefits to include military retirement income. This initiative specifically targets members of the uniformed services, alongside the surviving spouses of veterans, reflecting a recognition of their service and the financial implications that military retirement income can have on their lives. The bill seeks a comprehensive evaluation that will inform on the viability and benefits of such a tax subtraction.

Contention

Notably, the bill does not propose immediate changes to existing law but rather sets the stage for a detailed analysis that could inform future legislation. This cautious approach may mitigate contention, as it focuses on comprehensive research and reporting. However, stakeholders in the military community may have varying opinions on the extent to which these benefits should be extended or revised, as differing financial burdens and needs among veterans and their families could influence their perspectives.