Arkansas lawmakers have given final approval to a tax break for retired veterans that will be paid for by raising taxes on soda, candy, unemployment benefits and digital downloads.
The Senate on Thursday approved legislation to exempt military veterans' retirement benefits from the state income tax.
The measure passed on a 29-0 vote and heads to the governor's desk.
The measure faced opposition from conservatives who said that funding the $13 million exemption means raising taxes elsewhere.
The legislation raises taxes on candy and soda, and levies state income taxes on unemployment benefits. It also levies state sales taxes on e-books, digital music and ringtones.