A renewed effort to exempt Arkansas military veterans' retirement benefits from the income tax is one of the first bills filed ahead of next year's legislative session.
Republican Rep. Charlene Fite filed the proposed tax break on Tuesday, the first day for lawmakers to pre-file bills for the 2017 session. The proposal would exempt veterans' retirement and survivor benefits from the state income tax.
State finance officials said a similar tax break proposed last year would cost the state $13 million a year when fully implemented. Fite's proposal comes nearly a week after Republican Gov. Asa Hutchinson proposed a $50 million income tax cut that would take effect in two years.