HB 440 -- State Income Tax

Co-Sponsors:  Hartzler (123), Sheldon

Under current law, annuities, pensions, retirement allowances
and other retirement benefits provided to any person for service
in the uniformed services of the United States are subject to a
limited state income tax deduction of up to $6,000 of the
benefits paid based on income of the taxpayer.  This bill will
exempt from state income tax the total benefits received
regardless of income.

In addition, the bill allows the Department of Revenue to enter
into tax withholding agreements with any other state for
purposes of state income tax.  Under current law, only
agreements with other states that require income tax
withholdings are allowed.

This bill will become effective January 1, 1998.