H.B. 83
GENERAL ASSEMBLY OF NORTH CAROLINA
Feb 15, 2021
SESSION 2021 HOUSE PRINCIPAL CLERK
H D
HOUSE BILL DRH30067-BAf-3
Short Title: Eliminate Income Tax for Military Retirees. (Public)
Sponsors: Representatives Szoka, Bradford, Bell, and Wheatley (Primary Sponsors).
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO EXCLUDE MILITARY RETIREMENT PAY FROM TAXATION FOR
3 CERTAIN RETIRED MEMBERS OF THE ARMED FORCES OF THE UNITED STATES.
4 The General Assembly of North Carolina enacts:
5 SECTION 1. G.S. 105-153.5(b) reads as rewritten:
6 "(b) Other Deductions. – In calculating North Carolina taxable income, a taxpayer may
7 deduct from the taxpayer's adjusted gross income any of the following items that are included in
8 the taxpayer's adjusted gross income:
9 …
10 (5) The amount received during the taxable year from one or more State, local, or
11 federal government retirement plans to the extent the amount is exempt from
12 tax under this Part pursuant to a court order in settlement of any of the
13 following cases:cases listed in this subdivision. Amounts deducted under this
14 subdivision may not also be deducted under subdivision (5a) of this
15 subsection.
16 a. Bailey v. State, 92 CVS 10221, 94 CVS 6904, 95 CVS 6625, 95 CVS
17 8230.
18 b. Emory v. State, 98 CVS 0738.
19 c. Patton v. State, 95 CVS 04346.
20 (5a) The amount received during the taxable year from the United States
21 government as retirement pay for a retired member of the Armed Forces of
22 the United States by a taxpayer who served at least 20 years in the Armed
23 Forces of the United States. Amounts deducted under this subdivision may not
24 also be deducted under subdivision (5) of this subsection.
25 …."
26 SECTION 2. This act is effective for taxable years beginning on or after January 1,
27 2021.
*DRH30067-BAf-3*


Statutes affected:
Filed: 105-153.5
Edition 1: 105-153.5
Edition 2: 105-153.5
Edition 3: 105-153.5
Edition 4: 105-122, 105-130.7B, 105-130.8A, 105-130.11, 105-228.5, 105-153.5, 105-153.5A, 105-154, 105-163.39, 105-164.3, 105-164.42B, 105-164.4F, 105-449.37, 105-236, 105-241.6, 105-241.13A, 105-241.21, 105-249.2, 105-263, 105-277.3
Ratified: 105-122, 105-130.7B, 105-130.8A, 105-130.11, 105-228.5, 105-153.5, 105-153.5A, 105-154, 105-163.39, 105-164.3, 105-164.42B, 105-164.4F, 105-449.37, 105-236, 105-241.6, 105-241.13A, 105-241.21, 105-249.2, 105-263, 105-277.3
SL 2022-13: 105-122, 105-130.7B, 105-130.8A, 105-130.11, 105-228.5, 105-153.5, 105-153.5A, 105-154, 105-163.39, 105-164.3, 105-164.42B, 105-164.4F, 105-449.37, 105-236, 105-241.6, 105-241.13A, 105-241.21, 105-249.2, 105-263, 105-277.3