Lawmakers look at tax cut for vets

Associated Press

Updated: Feb 6, 2012 10:31 AM

SANTA FE (AP) — Veterans may see an easing of their state taxes if legislation makes it through to the governor.

The Santa Fe New Mexican (http://bit.ly/ArQoDp ) reports bills under consideration in the House and Senate this session would give veterans a 25 percent tax exemption on their military pay beginning in 2013.

The amount would rise to 50 percent in 2014 and 75 percent in 2015. By 2016, it would be 100 percent.

The exemption is capped at $1,000. Sixteen states offer 100 percent exemptions for military retirees and nine states have no income tax for veterans.

Backers say the taxes New Mexico would retain by keeping veteran retirees in the state would far outweigh the tax revenue the state would forgo with the veterans exemption.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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