House Moves To Exempt Military Retirement Pay From State Income Taxes | Beaufort County Now | The N.C. House passed a bill by a vote of 100-5 on Wednesday to exempt military retirement pay from state income taxes.

Coronavirus Disease 2019 (COVID-19)
Publisher's Note: This post appears here courtesy of the Carolina Journal. The author of this post is CJ Staff.

Photo: Maya Reagan / Carolina Journal

    The N.C. House passed a bill by a vote of 100-5 on Wednesday to exempt military retirement pay from state income taxes.

    House Bill 83 is sponsored by Rep. John Szoka, R-Cumberland, who represents the district where Fort Bragg and the 82nd Airborne are located. Szoka spoke on the floor of the House asking members to support it. He said the cost to the state during the first year of the exemption would be about $30.8 million; in the second year about $34.9 million.

    "With the average age of a military retiree being about 50, there is a higher propensity for them to start small businesses," argued Szoka Wednesday evening. "When you start small businesses you hire people, you pay payroll tax, you get more money, you get people working. That effect has been studied by numerous states and numerous universities, and they found that if you can increase the number of military retirees in your state by just 2,000 a year, you are going to generate more in tax revenue than if they weren't there ... it will pay for itself by year three."

    If signed into law, H.B. 83 would make North Carolina the 23rd state to treat military retirement pay as state tax-free.

    "It just makes sense to me," said Szoka. The bill now goes to the Senate for consideration.

    "While we applaud efforts to relieve North Carolina's military personnel of the state income tax burden, sound tax policy doesn't narrow the tax base with specific carve-outs," said Brian Balfour, senior vice president of research for the John Locke Foundation. "Given the massive surplus revenues just announced, legislators have an opportunity to aggressively reduce the tax burden on all North Carolinians. As an aside, military-friendly states Florida and Texas have no personal income tax."

    A separate, wide-ranging tax cut bill is under consideration in the legislature. That measure would take more than 200,000 North Carolinians at the lowest income levels off the tax rolls by increasing the state's standard deduction for joint filers from $21,500 to $25,500. It also would raise the child tax deduction by $500, phase out the corporate tax over several years, and further reduce the franchise tax.
Go Back


Latest Op-Ed & Politics

Wonder what those money are carrying to expose people to
The suspect who took several people hostage in a Texas synagogue on Saturday is reportedly dead and all hostages are safe.
The Democrat-dominated Buncombe County Board of Commissioners wants to join the legal fight against North Carolina’s new election maps.
The White House appeared to cut out remarks made by a reporter during Friday’s press briefing from the administration’s official transcript of the event.
Governor Cooper cautioned people to stay home today and stay safe, as most roads remain snow and ice covered, and thousands of homes and businesses in some coastal counties are without power.
Law enforcement officials in Texas are negotiating with a man who has allegedly taken hostages during services at a synagogue in Colleyville, which is located in the Dallas-Fort Worth area.
Governor Roy Cooper and state officials are advising residents to not let their guard down


The family of Gabby Petito will say in a “60 Minutes” interview set to air Sunday that they believe Brian Laundrie’s parents know where he is.
White fragility. Equitable math. The invisible knapsack. These critical theory terms and practices are now common in North Carolina’s public K-12 schools.
The death of a democratic republic is not a new possibility; it has happened before in the pantheon of World history, and it can happen again; but, who will be to blame?
My previous research brief discussed that last year Gov. Roy Cooper pledged over $1.3 billion in corporate welfare to just 58 corporations from state “economic development” incentives programs whose stated purposes are about “job creation.”
President Joe Biden has had a terrible few months, with numerous aspects of his agenda getting blocked in congress by even members of his own party.
Hang onto your seats, everyone. Tired of your grocery bill going up and up each week?
Since at least October 2020, we have been trying to find out how many of North Carolina’s Covid-19 hospitalizations were for people whose Covid infection was so bad that it put them in the hospital


Back to Top