Exempt public safety personnel retirement income from income tax

HB 598 exempts retirement income, such as pensions and annuities, earned by public safety personnel from state income taxes. To offset the resulting loss in tax revenue, the bill requires the state budget director to automatically transfer a specific percentage of monthly tax receipts to the Local Government Fund and the Public Library Fund. These funds will then be used to reimburse local governments and libraries for the money they would have otherwise collected from the exempted retirees. The legislation also clarifies that this retirement income remains protected from legal actions like garnishment or bankruptcy proceedings.