Cates reintroduces bill

From reporter Janice Morse:

A state lawmaker from Butler County announced Tuesday he will renew efforts to make military retirement pensions tax-exempt – a step that will put Ohio on par with other states and could encourage retirees to remain in Ohio.

Sen. Gary Cates, R-West Chester Township,wants to allow military retirees to exempt their entire pension from personal income taxes – with no cap on the amount of income that could be exempted.

“This is an issue that I feel very passionately about,” he said. “After all these men and women have done to serve their country and protect our freedoms, it just makes sense to provide support to them and their families once they return home.”

Cates noted that Ohio is one of a handful of states that lack full or partial personal income tax exemption on military retirement pay. As a result, the state loses a significant number of military retirees, who often chose to locate in other states to reduce their tax burden. This exodus is a tremendous hit on Ohio’s economy because experienced, professional workers leave the state to pursue careers elsewhere.

“In a time when Ohio is focused on attracting business investment and jobs to the state, it is imperative that we make reforms to our tax code to encourage our military personnel to stay in Ohio,” Cates said. “Their knowledge, skills and professionalism are an invaluable asset to any business, and would play an integral role in the continued effort to grow Ohio’s economy.”