thedrifter
01-09-06, 11:47 AM
Retirees may get tax break
By KAFIA HOSH
khosh@potomacnews.com
Saturday, January 7, 2006
Government retirees could receive a tax break if a submitted bill becomes law after the 2006 Virginia General Assembly session.
Del. L. Scott Lingamfelter, R-Dale City, proposed legislation that will exempt federal, state and local government retirees' pay from state income taxes.
HB161 will be presented to the appropriate committee and deliberated during the General Assembly, which convenes Jan. 11.
If the bill changes the state's tax code, it means former teachers, firefighters or federal agents' retirement pay will not be considered taxable income.
Currently, 10 states do not tax federal, state and local pensions. They are Alabama, Hawaii, Illinois, Kansas, Louisiana, Massachusetts, Michigan, Mississippi, New York and Pennsylvania.
Lingamfelter, who also represents Quantico and eastern Fauquier, said that many of his constituents and residents are retired government employees.
He said Virginia's income tax on their retirement pay is driving retirees away to live in states that don't touch their pensions.
"They believe they are being taxed too much so they move to states that guard their income," said Lingamfelter.
A tax relief will help stimulate and sustain the commonwealth's economy and encourage more people to live in Virginia during their retirement, said Lingamfelter.
"They're going to spend money in your community, and as they spend money they pay sales tax," he said. "As you create more business you create more jobs."
William Elwood, the executive director of the Richmond-based lobbyist group Virginia Governmental Employees' Association, said his organization supports any savings for state government retirees.
However, the effect of HB161 will depend on each retiree's income, Elwood said.
"With state employees, you have a whole gamut of higher paying and lower paying jobs," he said. "I'm sure the impact would vary on an individual basis."
The VGEA consists of thousands of current and retired state employees. The organization is currently lobbying for measures to increase the healthcare credit for state retirees and also increase the multiplier and the formula used to determine retiree benefits.
While the VGEA does not have a public stance on Lingamfelter's proposed tax relief, Elwood said, "We support measures to get more money staying in retirees' pockets."
HB161 will also affect military retiree benefits, since service members are considered government employees.
A retired Army colonel, Lingamfelter said he will donate any savings he receives if his bill becomes law.
"I do not want people to question my motives, when in fact a huge number of Virginians will benefit from this," he said in a released statement.
Ellie
They do not tax here either;)
By KAFIA HOSH
khosh@potomacnews.com
Saturday, January 7, 2006
Government retirees could receive a tax break if a submitted bill becomes law after the 2006 Virginia General Assembly session.
Del. L. Scott Lingamfelter, R-Dale City, proposed legislation that will exempt federal, state and local government retirees' pay from state income taxes.
HB161 will be presented to the appropriate committee and deliberated during the General Assembly, which convenes Jan. 11.
If the bill changes the state's tax code, it means former teachers, firefighters or federal agents' retirement pay will not be considered taxable income.
Currently, 10 states do not tax federal, state and local pensions. They are Alabama, Hawaii, Illinois, Kansas, Louisiana, Massachusetts, Michigan, Mississippi, New York and Pennsylvania.
Lingamfelter, who also represents Quantico and eastern Fauquier, said that many of his constituents and residents are retired government employees.
He said Virginia's income tax on their retirement pay is driving retirees away to live in states that don't touch their pensions.
"They believe they are being taxed too much so they move to states that guard their income," said Lingamfelter.
A tax relief will help stimulate and sustain the commonwealth's economy and encourage more people to live in Virginia during their retirement, said Lingamfelter.
"They're going to spend money in your community, and as they spend money they pay sales tax," he said. "As you create more business you create more jobs."
William Elwood, the executive director of the Richmond-based lobbyist group Virginia Governmental Employees' Association, said his organization supports any savings for state government retirees.
However, the effect of HB161 will depend on each retiree's income, Elwood said.
"With state employees, you have a whole gamut of higher paying and lower paying jobs," he said. "I'm sure the impact would vary on an individual basis."
The VGEA consists of thousands of current and retired state employees. The organization is currently lobbying for measures to increase the healthcare credit for state retirees and also increase the multiplier and the formula used to determine retiree benefits.
While the VGEA does not have a public stance on Lingamfelter's proposed tax relief, Elwood said, "We support measures to get more money staying in retirees' pockets."
HB161 will also affect military retiree benefits, since service members are considered government employees.
A retired Army colonel, Lingamfelter said he will donate any savings he receives if his bill becomes law.
"I do not want people to question my motives, when in fact a huge number of Virginians will benefit from this," he said in a released statement.
Ellie
They do not tax here either;)