DES MOINES – State Senator Amanda Ragan of Mason City this week helped pass a bipartisan measure which will exempt Iowa state taxes on military pensions.
“Exempting military retired pay from Iowa income taxes is a modest way to recognize and honor their contributions to the safety and security we as Americans enjoy today. I hope it will encourage more of them to move to Iowa, and more Iowa soldiers to return to Iowa when they return,” said Ragan. “When retired military personnel do settle in Iowa, they bring a world of experience, trained capabilities, and duty and honor to the problems and opportunities Iowans face. Military retirees are steeped in leadership and mission accomplishment in their cores. These are traits we need to encourage be brought to bear on the challenges we face in our state.”
Ragan said Senate File 303 will exempt all military retirement pay from Iowa individual income tax. This will apply to all Iowa residents receiving a pension for service in the Armed Forces, the Reserve or National Guard. It applies retroactively to January 1, 2014, for tax years beginning on or after that date.
“This is legislation I’ve been working on for the last two years as a member of the Senate Veterans Committee,” said Ragan. “Now that it has passed the Iowa Senate with Democratic and Republican support, I’m hoping the Iowa House will quickly approve it and send it to Governor Branstad for his signature.”