Cost for veterans' tax break higher than expected

Cost for veterans' tax break higher than expected

Cost for veterans' tax break higher than expected

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by Associated Press

KTVB.COM

Posted on February 18, 2014 at 12:32 PM

Updated Tuesday, Feb 18 at 12:32 PM

BOISE -- A plan to exempt veterans from paying taxes on their retirement benefits is moving forward, even after its sponsor said it may cost the state more than double what she originally envisioned.

The House Revenue and Taxation Committee voted Monday to send the bill to the full House for debate.

Rep. Kathleen Sims, a Republican from Coeur d'Alene, says giving military members a tax break--regardless of their retirement age--could convince skilled veterans to settle in Idaho.

But Sims now says that the exemption would reduce Idaho's tax haul by $7.8 million, instead of about $3.5 million as she estimated earlier.

She used Department of Defense figures to revise the cost, which Sims says more accurately reflects the "highest estimate."

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