Oregon's Senate Committee on Finance and Revenue convened on April 21, 2025, to discuss a significant legislative proposal aimed at making the state more welcoming for military veterans. Senator James Ivory Manning Jr. presented a bill that seeks to exempt military retirement pay from state taxes, a move he argues is essential for attracting and retaining veterans in Oregon.

The proposed legislation would index the exemption to inflation, starting from the tax year 2025 and extending through 2030. Manning highlighted the declining number of veterans in Oregon, currently estimated at around 285,000, and emphasized the importance of creating a veteran-friendly environment. He noted that many veterans are deterred from retiring in Oregon due to its tax policies, especially when compared to 26 other states that do not tax military retirement pay.

Manning's initiative is not just about financial relief; it is a strategic effort to encourage veterans to return to Oregon, thereby enhancing the state's community and economy. He pointed out that many veterans currently reside just across the border in Washington, where military retirement pay is not taxed, and expressed a desire to bring them back home.

The senator underscored the importance of recognizing the sacrifices made by military personnel and their families, stating that this bill represents a small but meaningful gesture of appreciation. By exempting military retirement pay from state taxes, Oregon aims to send a positive message to its veterans, reinforcing the state's commitment to supporting those who have served.

As the committee continues to deliberate on this proposal, the potential implications for Oregon's veteran community and the broader state economy remain a focal point of discussion. The outcome of this bill could significantly impact the lives of many veterans and their families, making Oregon a more attractive place to live and retire.