LITTLE ROCK — An Arkansas Senate leader is leaving open the possibility of considering a tax break for military veterans, despite concerns that there's no money in the state's budget for any more tax cuts in the coming fiscal year.
Senate Revenue and Taxation Committee Chairman Jake Files on Wednesday said he'd ask Lt. Gov. Tim Griffin to work with lawmakers to see whether there's money for the proposal to exempt veterans' retirement pay from the state income tax. Griffin and veterans' advocates urged the panel to advance the proposal, saying it would help attract retired servicemen to the state.
The proposal would phase in the exemption, costing the state an estimated $4.8 million in the coming fiscal year and $13 million a year when fully implemented in 2018.