Governor Pete Ricketts is working to generate support for a bill that would exempt half of the retirement pay of former military members from the state’s income tax.
Five of the six states surrounding Nebraska do not tax military retirement benefits at all, and the Governor tells KNEB News the situation creates a drain of talent. “On the eastern side of the state, we have many veterans who retire, and move to Iowa because they don’t tax military retirement benefits”, says Ricketts. “Obviously, on the western side of the state we’re competing with Wyoming that doesn’t have any income tax at all and with South Dakota, (we’re) in the same boat. So we know we lose veterans to surrounding states.”.
Ricketts says many military members end up with second careers following retirement, and that’s talent we need to keep locally.
The measure sponsored by Gordon Senator Tom Brewer will have a hearing before the Legislature’s Revenue Committee Thursday.