COLUMBUS, Ohio — A tax break intended to help Ohio attract military retirees has cost the state millions of dollars more than expected.
Former Gov. Ted Strickland signed a bill in 2007 declaring military pensions as tax exempt.
The state estimated it would cost up to nearly $22 million in tax revenue. But The Dayton Daily News reports the state now says the exemption actually cost more than $29 million in fiscal year 2014 and over $31 million this year.
State Rep. Rick Perales, a Beavercreek Republican and Air Force retiree, says the state recovers much of that money when retirees spend money in Ohio and through taxes on any new jobs they get.
The state is projecting it will lose more than $36 million for fiscal year 2017.
