SB519 • 2025

Exempts from state income tax for a taxpayer who is a veteran all retirement pay or pension received for service in the Armed Forces of the United States.

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Senator Smith DB
Last action: 2025-06-27
Official status: In Senate Committee
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Exempts from state income tax for a taxpayer who is a veteran all retirement pay or pension received for service in the Armed Forces of the United States.

Digest: Exempts from state income tax for a veteran all retirement pay or pension received for service in the Armed Forces.

What This Bill Does

Digest: Exempts from state income tax for a veteran all retirement pay or pension received for service in the Armed Forces.
The Act applies to tax years that start on or after January 1, 2026.
(Flesch Readability Score: 60.1).
Exempts from state income tax for a taxpayer who is a veteran all retirement pay or pension received for service in the Armed Forces of the United States.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2025-06-27 Senate
In committee upon adjournment.
2025-01-17 Senate
Referred to Finance and Revenue.
2025-01-13 Senate
Introduction and first reading. Referred to President's desk.

Official Summary Text

Digest: Exempts from state income tax for a veteran all retirement pay or pension received for service in the Armed Forces. The Act applies to tax years that start on or after January 1, 2026. (Flesch Readability Score: 60.1).
Exempts from state income tax for a taxpayer who is a veteran all retirement pay or pension received for service in the Armed Forces of the United States. Applies to tax years beginning on or after January 1, 2026.
Relating to: Relating to a taxable income exemption for taxpayers who are a veteran.
Current location: In Senate Committee

Current Bill Text

Read the full stored bill text

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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Senate Bill 519
Sponsored by Senator SMITH DB (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced. The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: Exempts from state income tax for a veteran all retirement pay or pension received for
service in the Armed Forces. The Act applies to tax years that start on or after January 1, 2026.
(Flesch Readability Score: 60.1).
Exempts from state income tax for a taxpayer who is a veteran all retirement pay or pension
received for service in the Armed Forces of the United States. Applies to tax years beginning on
or after January 1, 2026.
A BILL FOR AN ACT
Relating to a taxable income exemption for taxpayers who are a veteran.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
Section 2 of this 2025 Act is added to and made a part of ORS chapter 316.
SECTION 2. (1) As used in this section:
(a) “Armed Forces of the United States” includes the regular and reserve components
of the Army, Navy, Air Force, Marine Corps, Coast Guard and Space Force of the United
States and the National Guard.
(b) “Veteran” means an individual who is a veteran, as defined in ORS 408.225, except the
individual may be discharged or released under honorable or other than honorable conditions.
(2) There shall be subtracted from federal taxable income for a taxpayer who is a veteran
all retirement pay or pension that the taxpayer received for service in the Armed Forces of
the United States that is included in the taxpayer’s federal taxable income for the tax year.
(3) The total amount subtracted under subsection (2) of this section may not exceed the
taxpayer’s total retirement pay or pension received for service in the Armed Forces of the
United States that is included in the taxpayer’s federal taxable income for the tax year.
(4) The amount subtracted under subsection (2) of this section may not include any
amount of retirement pay or pension received for service in the Armed Forces of the United
States that is subtracted under ORS 316.680 (1)(e).
(5) The Department of Revenue may adopt rules for carrying out the provisions of this
section.
SECTION 3. Section 2 of this 2025 Act applies to tax years beginning on or after January
1, 2026.
NOTE: Matter in boldfaced type in an amended section is new; matter [ italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 3002