As a result of the North Carolina Supreme Court's decision in Bailey v. State of North Carolina (1998), North Carolina may not tax certain retirement benefits received by retirees of the State of North Carolina and its local government or by the United States government retirees (including military) for each retirement plan if the retiree has five or more years of creditable service as of August 12, 1989.
That means you have to have joined prior to August 12, 1984 to be eligible. The legislature has sponsored bills periodically since then to progressively move the applicable date forward, but since North Carolina has never met a tax it didn't like, they keep dying in committee. We shouldn't have to sue (again) to re-establish this principle. Please contact your state legislator and voice your support for NC House Bill 103!
If you are a retiree of the State of NC, local government or a US military/government retiree this is a significant amount of money -
as an example, a retired E-9 with 25 years of service would get $1,100 dollars put back in their pocket.
The bill is going to committee, again. Please call or send your rep an email today.
UPDATE: NOT good news. I emailed Representative George Cleveland (good guy, the bills originator) for an update, and this is what I got back:
"Mr *******, The bill is still in the Finance Committee and I do not think it will be heard this session. Unfortunately, I am unable to rally the support of leadership to move the bill to the Senate."
North Carolina not only discontinued the $4,000 military deduction, they're now stonewalling HB 103 even though a large number of the original recipients are passing on. If you're one of the folks like me who take the time to contact your reps, I would highly encourage you to let them know we don't appreciate their non-support of our veterans