An act relating to exempting all military retirement and military survivor benefit income

This bill proposes to exempt all U.S. military retirement income and military survivor benefit income from Vermont state income tax. It directly affects active and retired military personnel, as well as surviving spouses and dependents of deceased service members who receive these benefits. The legislation amends Vermont tax code to remove military retirement and survivor income from taxable income calculations, while also clarifying that taxpayers must choose between this exemption and other retirement income exclusions if they qualify for multiple. The bill includes a statement of purpose honoring military service and applies retroactively to January 1, 2023.