Tax Exemption for Military Retirees Wins Initial Approval

Military retirees in Nebraska will get to keep more of their retirement benefits under a bill that won first-round approval from lawmakers on Monday. The bill would exempt half of a military retiree’s benefit from Nebraska state taxes, a key priority for Governor Pete Ricketts. The measure advanced, 46-0, through the first of three required votes.

Senator Tom Brewer, who sponsored the bill, said the measure would help Nebraska attract and retain military service members after they retire. Several neighboring states, including Iowa and Missouri, don’t impose any tax on military retirement benefits and both states have managed to entice retirees from Nebraska’s Offutt Air Force Base.