Taylor helps approve bipartisan tax exemption for military pensions
DES MOINES — State Sen. Rich Taylor of Mount Pleasant today helped pass a bipartisan measure that will exempt Iowa state taxes on military pensions.
“These veterans have given 20 or more years of service to the nation,” said Taylor. “That kind of commitment is a value that goes deeper than the uniform. It is part of who they are and it will benefit the communities where they choose to live.
“Iowa is a national leader in state support for service members and military families. By exempting taxes on military pensions, Iowa has caught up with the states that already do so.”
Taylor said Senate File 303 will exempt all military retirement pay from Iowa individual income tax. This will apply to all Iowa residents receiving a pension for service in the Armed Forces, the Reserve or National Guard. It applies retroactively to Jan. 1, 2014, for tax years beginning on or after that date.
“Attracting newly retired veterans will reduce our state’s shortage of skilled workers and help grow our economy,” said Taylor. “I supported this legislation last year when it passed the Senate Veterans Committee. Now that it has passed the Iowa Senate with Democratic and Republican support, I’m hoping the Iowa House will quickly do the same.”