AR HB1399

Creates complete income tax exemption for retirement and survivor benefits received by retired members of the U.S. military uniformed services, including the Army, Navy, Marine Corps, Air Force, Coast Guard, reserve components, National Guard, U.S. Public Health Service commissioned corps, and NOAA Commissioned Officer Corps.

Exempts survivor benefits funded by the retirement pay of uniformed services members from state income tax.

Maintains existing $6,000 exemption for non-military retirement benefits from individual retirement accounts and public or private employment-related retirement systems.

Prevents taxpayers claiming the military retirement exemption from also claiming the standard $6,000 retirement benefits exemption under subsection (a).

Effective for tax years beginning on and after January 1, 2018.