Proposed bill would exclude veteran pensions from state tax
PROVIDENCE, R.I. (AP) — Local legislators are hoping to keep veterans in Rhode Island by excluding their pensions from state income tax.
Republican Rep. Robert Lancia of Cranston is calling on the state to create a new tax exemption for income derived from military pensions. He hopes this will convince more veterans to remain in the state.
Rhode Island is one of a few states that fully taxes income derived from those specific retirement funds, which Lancia says leaves veterans at a “severe disadvantage.” A bill proposed by Lancia and co-sponsored by Republican Rep. Bobby Nardolillo would fully exempt military pensions from state income tax by 2022 in an effort to impact Rhode Island’s population decline.
There are approximately 65,000 veterans living in Rhode Island, according to state records.