Oklahoma bill would eliminate income tax on veterans retirement pay

TULSA, Okla. (KTUL) – Lawmakers are discussing a bill to eliminate the income tax on veterans' retirement pay in Oklahoma.

“A tax-free check, as far as the state’s concerned, is a great benefit,” said Dan Fuller, Tulsa VFW Post 577 commander. “Oklahoma is a great state for veterans and I think it would maybe bring people to the state.”

Currently, veterans get a reprieve on 75% of the pay they get from any branch of the military.

“Our number one goal is to make this the number one state for veterans,” said Rep. Kevin McDugle. “In Oklahoma, one in four at least served.”

McDugle feels Oklahoma is well on its way to doing just that.

His bill passed the House unanimously and in his interim studies, they found it would cost the state an estimated $7.8 million to cut the tax. But the amount of lost revenue he says the state is losing from veterans not returning to the Sooner State is even higher.

“$15 to 20-plus million in revenue leaving our state that’s not being realized in tax dollars,” said McDugle. “It's also not being realized in the workforce and instead, when we have a veteran retire today, they leave and go to Texas or Florida or any number of surrounding states.”

Fuller says that not only will veterans that move back home to Oklahoma get a warm welcome from them, but one by the entire state because of programs like this.

“We’re looking forward to seeing how this comes out. I feel like they’ve acknowledged the sacrifice of being away from family and in conflict,” said Fuller. “And they’re just trying to give back a little bit and we’re very appreciative.”

There is a Senate bill aimed at doing the same as well that passed unanimously. McDugle says he doesn’t care if it's his or the other that gets passed because, regardless, it's the right thing for Oklahoma to do.