Military retirees would get a tax break on their pensions under a bill moving through the House. A tax credit would be given to military retirees equal to the taxes due on their military pension benefits under HCS HB 636, 308 & 173.
Rep. Will Kraus (R-Raytown sponsors the bill and says it is a way for the state to let the men and women in the military know that it appreciates them. A provision has been added to Kraus’ bill that would provide a tax credit to the poorest of military retirees, even if they don’t pay state income taxes.
The bill would cost the state approximately $26 million dollars a year. That price tag could grow in size if the number of military retirees in Missouri grows beyond the 32,000 who currently reside here. Kraus says 20 other states provide such a tax break, including the neighboring states of Kansas, Illinois and Kentucky. The House likely will return to the measure next week for final approval and pass it on to the Senate.