A bill that would halt Idaho from taxing veterans' retirement income passed the House Revenue and Taxation Committee.
Main sponsor Rep. Kathleen Sims, R-Coeur d'Alene, touted it as a way for the state to compete against 13 others that don't tax military pensions to draw veterans. Although Idaho's take would decrease by about $3.5 million under the exemption, she argued that most veterans get a civilian job after they retire from the military, funneling more revenue to the state's coffers.
But some lawmakers expressed reluctance at Tuesday's hearing, saying that if they allowed an exemption for one group, members of other professions--like retired police officers and firefighters--would come looking for the same tax break.
Despite the dissention, the bill passed 11 to 4, clearing the way for House floor debate.