The bill's passing would significantly affect how military retirement income is taxed in Rhode Island. By exempting this income from state taxation, it aims to alleviate financial pressures on veterans and encourage them to reside in the state post-retirement. Proponents argue that such a measure would make the state more attractive to military families and retirees, supporting their integration and participation in local economies. Furthermore, it aligns with the national trend of states offering tax relief for veterans' income.
Summary
S2066 proposes amendments to the Rhode Island General Laws regarding personal income tax, specifically targeting modifications to federal adjusted gross income for military retirement income. Effective from January 1, 2023, this bill seeks to allow residents who receive military pension income to subtract this income from their federal adjusted gross income when calculating state taxes. The goal is to provide fiscal relief to veterans and their families, ensuring that military service is recognized and rewarded in the state’s tax code.
Contention
While the bill received notable support for its intentions to benefit veterans, there are concerns about its potential fiscal impact on state revenues. Opponents may argue that exempting military pensions could lead to a decrease in tax income, thus straining state budgets. During discussions, advocates for fiscal conservatism may raise alarms about the implications this could have for funding essential state services. However, supporters emphasize the moral obligation to support those who have served in the military and the overall socio-economic benefits of retaining veteran populations in Rhode Island.
Allows a modification to federal adjusted gross income for personal income tax for qualified tips and overtime income consistent with the federal tax treatment.
Allows a modification to federal adjusted gross income for personal income tax for qualified tips and overtime income consistent with the federal tax treatment.
Increases the federal adjusted gross income threshold for modification for taxable social security income. Amends references to federal adjusted gross income as pertains to modification of taxable retirement income from certain pension plans or annuities.
Increases the federal adjusted gross income threshold for modification for taxable social security income. Amends references to federal adjusted gross income as pertains to modification of taxable retirement income from certain pension plans or annuities.
Allows a modification for all taxable pension and/or annuity income includible in federal adjusted gross income for tax years beginning on or after January 1, 2026.
Allows a modification for up to $50,000 of individual retirement account income that is included in federal adjusted gross income for the taxable year; provided that the person with individual retirement accounts has no income from pensions.
(New Title) modifying the procedures for withdrawal from a cooperative school district and the discontinuance of elementary and high schools and requiring the review of school district operating documents by school boards.
Water supply: conservation; limits on water withdrawals under part 327 of the natural resources and environmental protection act; amend. Amends sec. 32723 of 1994 PA 451 (MCL 324.32723). TIE BAR WITH: SB 0763'25