Veterans See Tax Break As Way To Make Minnesota Competitive

ST. PAUL (AP) — Military veterans say a last-minute provision slipped into a $260 million package of tax breaks at the end of the legislative session is a major win for Minnesota service members.

The legislation that awaits action from Gov. Mark Dayton includes a provision exempting military retirement pay from being taxed by the state.

Minnesota has long been one of a handful of states that still taxes military pensions.

The legislation has long been championed by Rep. Bob Dettmer, a retired Army Reserve veteran who served in Kuwait after the 9/11 terrorist attacks.

Dettmer has been pushing to exempt retirement pay for over a decade. He says he hopes the move encourages more veterans to stay in Minnesota after they retire.