An Arizona Senate panel has advanced a proposal championed by Republican Gov. Doug Ducey boosting an income tax exemption for military pensioners.
But Wednesday's hearing wasn't a blanket blessing for the governor's proposal. It barely passed on a 4-3 vote with two of the four Republicans and one Democrat on the Senate Government Committee voting no.
The proposal boosts the current $2,500 exemption to $10,000 over two years. That would save an average military retiree $280 in taxes a year and cost the state about $15 million.
Republican Sens. David Farnsworth and Warren Peterson said they'd prefer lower overall income taxes. Democratic Sen. Steve Farley opposed the break for 52,000 retirees because it could cut services for 550,000 vets without pensions.
The measure is Senate Bill 1167.