| For Immediate Release | For more information contact: |
| January 31, 2001 | Doug Champeau (651-296- 4305) |
ST. PAUL Representative Mike Osskopp (R-Lake City) wants to provide an incentive to the state's military personnel and those thinking about enlisting. He's co-sponsoring a bill that would provide a tax exemption off the first $5,000 of a soldier's paycheck. The tax deduction would apply to active duty military, Minnesota National Guard members and armed forces reserves.
"Other states have already enacted such legislation," Osskopp said. "The fact that we don't have it discourages military personnel from declaring Minnesota their state of residence. It also gives recruiters another incentive in attracting top-notch people into the military."
Under current law, military pay (other than combat pay) is subject to income tax at both the state and federal levels. Osskopp's bill would also exempt an additional $3,000 of military compensation for services performed outside Minnesota. Osskopp has been a long-time advocate of the state's military. He authored legislation in 1996 that provided a state bonus to Minnesota's Gulf War veterans.
Unlike other states, Osskopp made sure the Minnesota legislation included National Guard members.
"These are the folks who are out there when there are floods, tornados and other natural catastrophes," Osskopp said. "They earned their stripes. They should get the tax reduction."
The bill was heard this week in the House Tax Committee and will be considered for inclusion in the Omnibus Tax Bill when it is put togther later in the legislative session.
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