Maryland Governor Larry Hogan unveiled a bill Thursday that would eliminate state income tax for veterans receiving military pensions.
The bill would be phased in over four years, providing 25 percent relief in the first year and increasing to 100 percent, according to a press release from the governor's office.
Hogan says the Military Retirement Income Tax Exemption would cover pension income starting Jan. 1, 2015, and would benefit more than 50,000 veterans living in the state. Veterans in Maryland earn an average of $28,666 in military pensions. Currently, all but $5,000 of that income is subject to personal income tax.
"Making our state as welcoming and friendly as possible to military retirees is not only common sense but it's simply the right thing to do," Hogan said in the release.
The bill is a part of a series of tax relief measures Hogan outlined in his State of the State address.
The Republican governor also plans to support measures to cut to personal property taxes for small businesses and a repeal of the state's rain and gas taxes.
