Legislation would create tax exemption for veterans moving, staying in Kentucky
Deduction of the first year’s income for retired veterans who remain in or immediately move to Kentucky upon retirement
FRANKFORT, KY. (WTVQ) – State Rep. Ken Fleming has prefiled legislation that would establish a tax exemption for Kentucky veterans following their retirement from the Armed Forces. The measure is cosponsored by Representative Walker Thomas and Representative DJ Johnson.
“These men and women have dedicated their lives to the service of their country,” said Fleming. “Now, it is our responsibility to ensure they receive the benefits that they have rightfully earned.”
BR 971 would create a deduction of the first year’s income for retired veterans who remain in or immediately move to Kentucky upon retirement. The bill would require permanent residency within the state for at least three consecutive years following to remain eligible. In addition to supporting Kentucky’s veterans, sponsors note the measure has the potential for significant economic and workforce development across the state.
“These are highly skilled, hardworking individuals,” said Representative Thomas. “They bring expertise and experience that would be invaluable to our state.”
Of the 41 states that tax personal income, there are currently 23 that do not tax military retirement pay. Kentucky is among the remaining states that include partial exemptions, only exempting veterans who retired before 1997 and whose retirement pay does not exceed $31,110. This measure would give exemption to all veterans who retire in or move to Kentucky, regardless of income.
“Veterans have a lot of options as far as where to retire,” said Representative Johnson. “We want Kentucky to be the best option for them.”