Editor comments on military tax break
By Julie Bisbee
Senate Bill 881 removes the state income tax on federal pay to troops. The exemption will apply to all active military personnel, including National Guard members and reservists.
Senate author Steve Russell, R-Oklahoma City, said military personnel often switch their state of residency on military financial documents to avoid states with income taxes. This law, which takes effect July 1, 2010, will make Oklahoma one of 16 states with an active-duty military tax break.
Military personnel declare their state of residency, even when they are serving in other states or countries. They also pay excise taxes, license plate fees and other state taxes to their state of residency. Russell said the law could prompt more troops to declare Oklahoma their state of residency.
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