Daily Tax Report: State

Arizona Governor Aims to End State Tax on Veteran Pensions

Jan. 13, 2020, 11:03 PM

Arizona Gov. Doug Ducey wants to end state income tax on military pensions to make the state “homebase for veterans everywhere in the country,” he announced at his State of the State speech Monday.

  • The state already exempts the first $3,500 of military retirement pay. Ducey’s proposal would exempt all military retiree pension pay retroactive to the 2020 tax year, according to his office.
  • The proposal would save more than 50,000 veterans an average of $900 each annually, Ducey’s office said.
  • Ducey (R) also knocked a potential ballot proposal to raise income taxes on high earners to...
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