ARIZONA HOUSE OF REPRESENTATIVES

HB 2236: military pensions; increase; tax subtraction

PRIME SPONSOR: Representative Livingston, LD 22

BILL STATUS: Military, Veterans and Regulatory Affairs

Abstract

Relating to income tax deductions for veterans' pensions.

Provisions

1. Increases the maximum allowable income tax deduction for veterans' retirement pay from $2,500 to $5,000 in TY 2019.

a. Continues to increase the allowable amount by $1,000 each TY up to $15,000 in TY 2029. (Sec. 1)

2. Makes a conforming change. (Sec. 1)

Current Law

Arizona gross income is equal to the Federal adjusted gross income for the taxable year, computed pursuant to the IRC. Arizona adjusted gross income is an individual's Arizona gross income after any statutorily required additions or subtractions (A.R.S. § 43-1001).

A maximum amount of $2,500 of benefits, annuities and pensions received from retired or retainer pay of the US Uniformed Services may be deducted when calculating Arizona gross income (A.R.S. § 43-1022).

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Fifty-third Legislature                  HB 2236

Second Regular Session                               Version 1: Military, Veterans and Regulatory Affairs

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