Summary of Tax Cuts
Military retirement and survivor benefits would become exempt from taxation beginning with the 2018 tax year. Eligibility would be for those who retired from uniformed service with the Army, Marine Corps, Navy, Air Force and the Coast Guard. Also entitled for the income tax exemption would be retirement benefits for retirees of reserve components of the various armed services, the National Guard of any state, the reserve corps of the United States Public Health Service, and the National Oceanic and Atmospheric Administration Commissioned Officer Corps. A taxpayer claiming an exemption under § 26-51-307(e) on military retirement or survivor benefits would be unable to claim the $6,000 exemption under § 26-51-307(a) on retirement benefits received from non-military sources.
The Military Retirement Exemption is estimated at $13.4M in FY19
Act 141 also did some other things including reducing the soft drink tax and expanding the sales tax base and was net neutral.