Evansville veteran reacts to elimination of military income tax

Evansville veteran reacts to elimination of military income tax
Published: May. 29, 2023 at 11:12 PM CDT
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EVANSVILLE, Ind. (WFIE) - In fiscal year 2024, military pay will be exempt from individual income taxes in the state of Indiana.

House Enrolled Act 1034 was formally signed into law earlier this month and takes effect on July 1.

“Oh I love it,” said Evansville veteran Paul Glover. “I think it should’ve been a law that should’ve been passed a long time ago.”

Glover works with the VFW, and he told 14 News on Memorial Day that he has worked with many veterans who struggled financially when their service ended.

He said sparing their military pay from income taxes could go a long way toward bolstering their savings.

“It gives a little bit more money back to that veteran for [the] sacrifice that [they] did,” he said.

Prior to HEA 1034, military personnel were exempted from the individual income tax up to $5,000.

When the full exemption takes effect in 2024, the Legislative Services Agency estimates that the state will lose $20 million in tax revenue in 2025. Local counties are expected to lose revenue as well.

Annually, that loss is estimated to grow anywhere from three to five percent.

Glover said that cost is something he and many veterans see as well worth incurring.

“It’s going to really help us in the long run,” he said.

Both the House and Senate passed the bill with no votes against.

There were ten excused legislators in the House, including local representatives Matt Hostettler and Cindy Ledbetter.