Ricketts Signs Bill Exempting 100% Of Military Retirement Pay From State Income Tax


     Nebraska Gov Pete Ricketts used a ceremony in front of the Governor’s Mansion in Lincoln yesterday to sign a bill exempting 100% of all military retirement pay from the state income tax starting next year.

     The bill, sponsored by Gordon Senator Tom Brewer, passed the legislature 47-0 on final reading and Ricketts called it at the signing ceremony a “great win” for the state, its job creators, and military families looking to put down roots in Nebraska.

      Ricketts says Nebraska has been losing too many top-notch, well-trained veterans to other states that don’t tax military retirement pay, but now is on an even-footing with them.

Senator Brewer, a military retiree himself described as the most-decorated soldier in the history of Nebraska, called passage of the bill a group effort by lawmakers who understand what veterans mean to the country and to the state.

Brewer also sponsored the bill two years ago that provided a 50% exemption for military retirement pay. The full exemption will cost the state $8-million dollars in tax revenue this year and another $20-million next year. 

      Brewer and the other supporters say keeping skilled, trained veterans with long civilian careers ahead in Nebraska will help the bill eventually pay for itself.