Minnesota Military Pension Exemption

News from State Representative Bob Dettmer:

The reform I am the most excited about is the provision that makes all military retirement benefits tax-exempt. This measure was the result of many people working over the last two decades, and persistence in negotiations with the Senate. There are approximately 18,000 retired veterans who live in our state, and this bill will encourage them to stay in our communities and workforce once they retire from service. Minnesota is now the 46th state to exempt military retirement benefits. In my mind, this provision was not just a good thing to do, it was the right thing to do, and I am so happy that this measure finally passed this year.


Press Release from State Representative Josh Heintzeman

Posted: 2016-06-01

Historic Veteran Tax Cut Signed into Law as Part of Supplemental Budget

St. Paul, MN- On Wednesday, Governor Mark Dayton signed a supplemental budget bill into law that includes a full exemption of veterans’ retirement benefits. The supplemental budget bill, House File 2749, passed the House on a broad bipartisan vote of 95-39. Representative Josh Heintzeman, R-Nisswa, authored the veteran exemption provision in the House.

“This has been decades in the making and I am grateful to have played a role in helping bring it across the finish line,” said Heintzeman. “Not only is exempting veteran retirement benefits from state income tax the right thing to do for our vets, it’s the right thing to do for Minnesota. This is a huge victory for our state.”

There are currently close to 18,000 veterans living in Minnesota who will now see their military retirement pay exempted from state income tax.

House Veteran Affairs Division Chairman, Representative Bob Dettmer, R-Forest Lake, offered his support and appreciation to Representative Heintzeman for carrying the provision in the House.

"This measure has been a top priority for our veteran community for as long as I can remember," said Dettmer. "It will have a huge impact on the nearly 18,000 military retirees that currently live in Minnesota, and I hope it will encourage more soldiers to stay, or move here, after they leave service. It took nearly 20 years, and countless hours of work by legislators and staff to pass this exemption. It has certainly been a long time coming, and I am so pleased that the Governor signed the retirement benefits exemption into law for our veterans. I'd also like to thank Rep. Heintzeman for carrying this bill during the last biennium."

House Speaker Kurt Daudt, R-Crown, congratulated and thanked Representatives Heintzeman and Dettmer for their leadership on this issue.

"I commend Representatives Heintzeman and Dettmer for their leadership on this important issue," said Speaker Daudt. "Because of their dedication and resolve, 18,000 Minnesota veterans will no longer pay state income tax on their retirement benefits. This is truly a historic day for our veterans."