Proposed NC Budget Exempts Military Pensions from State Income Taxes

RALEIGH, N.C. -- The proposed North Carolina budget, which was released today, exempts military pensions from the state's income tax.

Lawmakers will vote on the budget this week.

Sen. Jim Burgin (R-Harnett) said, "We want to make North Carolina the most military-friendly state in the country, and this tax exemption should get us there."

Sen. Michael Lazzara (R-Onslow), who served in the U.S. Marine Corps, said, "With this provision, North Carolina would see a dramatic increase in qualified service members retiring to our state and beginning new careers right here. With the fourth-largest military footprint in the country, this will have a significant and lasting economic benefit to our state"

The military pension tax exemption will result in veterans keeping $30 million of the money they earned instead of paying it to the state in taxes. North Carolina has one of the largest military footprints in the country. The state ranks fifth nationally in population share of military personnel.

The military pension tax exemption was first proposed by Sen. Burgin earlier this year as part of his Senate Bill 4.

Sen. Lazzara represents Marine Corps Base Camp Lejeune and Marine Corps Air Station New River. He enlisted in the U.S. Marine Corps after high school and served at Camp Lejeune.