SB 225 Oregon Senate · 2025 Regular Session

Relating to taxable income exemption for military taxpayers; prescribing an effective date.

Summary

] Exempts from state income tax up to $17,500 in federal retirement pay or pension received for service in the Armed Forces of the United States for a taxpayer who is receiving federal retirement pay or pension for service in the Armed Forces of the United States and who has [ not ] attained 63 years of age before the close of the taxable year [ for which a return is filed ]. Applies to tax years beginning on or after January 1, 2025. Takes effect on the 91st day following adjournment sine die.

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Jun 2025

Senate Passage

Jun 2025

House Passage

Governor

Introduced Jan 13, 2025 Last action Jun 28, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → A-Engrossed · 3 edits · Jun 3, 2025

MINOR

The bill was amended to change the age eligibility for the military retirement pay tax exemption from 62 or younger to 63 or older, and to clarify that the exemption applies to federal retirement pay. The amendment also adds a new paragraph to specify rounding rules for annual cost-of-living adjustments.

Scope change

The bill's scope was narrowed to apply only to taxpayers aged 63 or older who receive federal military retirement pay, rather than those 62 or younger receiving any military retirement pay.

ELIGIBILITY

Age eligibility for the tax exemption was changed from 62 years or younger to 63 years or older.

Clarified that the exemption applies specifically to federal retirement pay or pension for service in the Armed Forces.

REQUIREMENT

Added a new paragraph specifying that if the annual cost-of-living adjustment is not a multiple of $50, it must be rounded down to the next lower multiple of $50.

Floor votes · Senate Jun 3, 2025

How they voted

29–1

Passed

Total votes 30

Jun 3, 2025

D Democratic18

17 Yea 1 Nay

94% Yea

R Republican12

12 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 28, 2025

Lower · Passed

In committee upon adjournment.

lower

Jun 13, 2025

Committee

Referred to Tax Expenditures by order of Speaker.

lower

Jun 13, 2025

Lower · Passed

Recommendation: Do pass and be referred to Tax Expenditures.

lower

Jun 5, 2025

Committee

Referred to Revenue.

lower

Jun 4, 2025

Introduced

First reading. Referred to Speaker's desk.

lower

Jun 3, 2025

Upper · Passed

Third reading. Carried by Manning Jr. Passed.

upper

Jun 2, 2025

Upper · Passed

Recommendation: Do pass the A-Eng. bill.

upper

Mar 19, 2025

Committee

Referred to Finance and Revenue by order of the President.

upper

Mar 19, 2025

Upper · Passed

Recommendation: Do pass with amendments and be referred to Finance and Revenue. (Printed A-Eng.)

upper

Jan 17, 2025

Committee

Referred to Veterans, Emergency Management, Federal and World Affairs.

upper

Jan 13, 2025

Introduced

Introduction and first reading. Referred to President's desk.

upper

5 primary · 12 co-sponsors