Smith-Sponsored Bill Improves Tax Equity for Members of the Military
WASHINGTON, D.C.–The Senate today passed the Armed Forces Tax Fairness Act of 2003 which ensures fair tax treatment for men and women serving in the military and foreign service.
"The benefits received by the men and women serving in the military, including the many Oregonians in uniform, are provided to ease the burdens unique to the military community," said Smith. "Taxing those benefits is unfair in times of peace and outrageous in times of war when the utmost demands are made of our military personnel."
The Act remedies specific tax problems for personnel in the uniformed services and foreign service including:
Exclusion of military death benefit payments
Exclusion of gain from the sale of a principal residence by military and foreign service personnel
Exclusion of benefits received under military housing assistance program
Expansion of combat zone filing rules to include contingency operations
Above-the-line deduction for overnight travel expenses of National Guard and Reserve members
Expansion of membership for veterans' organizations
Exclusion of child care benefits
Treatment of military academy appointments as scholarships for the purposes of education savings accounts
The bill also suspends the tax-exempt status of 501(a) organizations that are designated or identified as a terrorist organizations. The bill will now be considered by a joint House-Senate conference committee before going to the President for his signature.
