The bill H.584, introduced by Representative Casey of Montpelier, aims to exclude income from public safety pensions and survivor benefits from Vermont income taxation. Specifically, it amends 32 V.S.A. § 5811 to include a new provision that states any pension or survivor benefit income received from a U.S. state or municipality for services as a police officer, firefighter, or emergency medical technician will not be considered taxable income. This change is intended to alleviate the tax burden on Vermonters who receive such benefits.

Additionally, the bill modifies the statutory purposes outlined in 32 V.S.A. § 5813 to clarify that the exemption for pension and survivor benefit income is designed to lessen the tax burden on individuals deriving income from public safety professions. The act is set to take effect retroactively on January 1, 2026, applying to taxable years beginning on and after that date.

Statutes affected:
As Introduced: 32-5811, 32-5813