Push to end taxes on military retirement pay in Vermont

MONTPELIER, Vt. (WCAX) - A tripartisan group of Vermont lawmakers is calling for an end to taxes on military retirement pay.

Exempting taxes on military retirees has been a big priority for Republicans in the Statehouse and Gov. Phil Scott.

They say it’s a way to honor their service and to help grow the workforce.

Nationally, veterans retire between the ages of 35 and 50.

Supporters say nixing the pension tax would keep a skilled workforce in Vermont.

The measure passed the House last year and is now in the Senate.

“To have a tax exemption from those benefits, it really helps to stretch the budget and make it easier for them to stay in Vermont and work,” said Robert Burke, the director of the Office of Veterans Affairs.

If enacted, the initiative would cost an estimated $3 million.

Gov. Scott and Lt. Gov. Molly Gray, D-Vermont, both support the measure.

Vermont is home to some 4,000 military retirees and is one of just three states that taxes military pensions.

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