As a recently retired Senior Foreign Service Officer, who worked for the US Agency for International Development for 27 years along side Department of Defense and Department of State colleagues to promote US national security interests abroad, I wish to express my support for HB 47. In countries such as Afghanistan, Mali and Yemen, I served as a member of interagency teams to design and implement plans drawing upon the unique expertise and resources of different US Government entities. I am proud of the way that we intelligently and steadfastly brought to bear defense, diplomacy and development capabilities to pursue US foreign policy objectives. When USAID was suddenly abolished last year, I was leading the USAID program in Liberia. Facing the imminent loss of our livelihoods and great financial uncertainty, my colleagues posted around the world and I had to abruptly decide where to settle in the United States. Spending the majority of my career overseas, I did not own a house in the US. Having grown up in Virginia, my preference was to return there to be close to family members, but my wife and I wondered whether it would make more sense to move to another state where less of our income would be spent on taxes. A friend of mine who previously lived in Alexandria, had recently divorced and was facing financial hardship. She opted to move to Pennsylvania, where her pension would not be taxed. Other colleagues decided to retire abroad or in Florida. I was fortunate that due to the foresight and sacrifice of my father, I had financial resources available to me that allowed us to retire in Virginia. I understand that in June of 2022, Virginia Governor Glenn Youngkin signed the two-year state budget into law which included new tax exemptions on retirement income for military retirees and the surviving spouses of military retirees. HB 47 proposes to grant similar tax exemptions of up to $40,000 over four years on Foreign Service retirement income over a four-year span. I believe this measure would appropriately recognize the important contributions to national security made by Foreign Service Officers over the course of their careers and encourage them to retire in the great Commonwealth of Virginia, where we can devote our talent and experience to supporting our local communities.

This is to support the legislation, House Bill 47 (HB47). We, the Foreign Service (FS) retirees, have served overseas for 90% of our careers, only to return home and realize how a state income tax impacts us while receiving only a small annuity. This bill would provide FS retirees a tax exemption that could assist them when they need it the most. As we age, our medical bills increase; a tax exemption could help us balance that need. Virginia is a beautiful state that offers retirees many opportunities. Moving to a different state at this point in our lives, isolated from our families, is not something we look forward to. I hope our VA elected officials understand this situation.

I am writing to express my support - and ask for yours - for House Bill 47 -  Income Tax, state, subtractions, uniformed services and foreign service retirement benefits. This legislation provides that, for taxable years beginning on and after January 1, 2027, (i) the military retirement income tax subtraction allowed under current law shall include retirement income of uniformed service members and (ii) up to $40,000 of United States Foreign Service member retirement benefits shall be subtracted in computing Virginia taxable income. I believe the committee working on this bill has "gently lay the bill on the table,” which is inappropriate; it's telling our veterans we appreciate their service - but not their sacrifices.  As the son of a career uniformed soldier and as a retired Foreign Service Officer, I believe the Commonwealth of Virginia should do all it can to express its gratitude to those who have served. And I thank you for helping assure their sacrifices are not forgotten. Sincerely, David K. Wessel 800 South Saint Asaph Street, #401 Alexandria, VA 22314

• House Bill (HB) 47 would ease one of the most significant financial burdens commonly cited by members of the Foreign Service upon retirement: taxation of their pensions. • In June of 2022, Virginia Governor Glenn Youngkin signed the two-year state budget into law which included new tax exemptions on retirement income for military retirees and the surviving spouses of military retirees. This new legislation grants up to $40,000 in tax exemptions on military retirement income over a four-year span. • HB 47, if passed into state law, would grant up to $40,000 in tax exemptions on Foreign Service retirement income over a four-year span. These new retirement benefits would be granted to all eligible Foreign Service members receiving income through either the Foreign Service Retirement and Disability System or the Foreign Service Pension System. • Service in the United States Foreign Service is indeed analogous to service in the United States military, a key difference being that most of one’s service takes place overseas. U.S. Foreign Service members are often assigned to dangerous and difficult overseas assignments in support of U.S national security. • In an ongoing effort to increase U.S. Foreign Service parity with the U.S. military on matters of taxation, the inclusion of retired Foreign Service members under the provisions of HB 47 will be an appropriate and welcome addition. • This common-sense legislative update will rightfully enable retired members of the Foreign Service – diplomats, international development experts, and other patriotic professionals who protect the national security of the United States – to move closer to parity with retired members of the U.S. military. • In lieu of retiring abroad or elsewhere in the United States, the passage of HB 47 into state law would also attract more former members of the U.S. Foreign Service to retire in the Commonwealth of Virginia.

I’m writing on behalf of the Commissioned Officers Association of the U.S. Public Health Service and the 313 retired officers of the United States Public Health Service (USPHS) Commissioned Corps and the National Oceanic and Atmospheric Administration (NOAA) Commissioned Officer Corps who call Virginia home. Our mission is to protect and enhance the public health and safety of the United States by supporting and advancing the interests of the Commissioned Corps and its officers. We strongly support Virginia House Bill 47, which would expand the state’s income tax subtraction for military retirees to include retired officers of the USPHS and NOAA Commissioned Officer Corps. These men and women in USPHS and NOAA, like their counterparts in the armed forces, are sworn to serve and defend our nation in times of crisis and directly support the armed forces. For example, USPHS serves as medical personnel for the U.S. Coast Guard, and NOAA supports oceanographic and bathymetric operational and tactical requirements of the U.S. Navy and U.S. Marine Corps, in addition to their other duties. We urge you to pass this legislation to ensure these officers are recognized alongside other uniformed service members and can benefit from the same income tax subtraction for military retirement pay. Neighboring states, MD, WV, NC, and KY, all include all uniformed services in similar tax benefits. COA appreciates your consideration and support for HB 47. Passing this legislation would be an important step in recognizing the contributions and sacrifices of USPHS and NOAA officers who serve the nation.

Comments Document

See attached the official statement of support for House Bill 47 from the American Foreign Service Association. Thank you.

I am writing to urge support for HB47, introduced by Delegate Reid, which seeks to expand Virginia’s state income tax subtraction for military retirees to include retired members of the U.S. Public Health Service (USPHS) Commissioned Corps and the National Oceanic and Atmospheric Administration (NOAA) Commissioned Officer Corps. As you are aware, the USPHS Commissioned Corps and the NOAA Commissioned Officer Corps are members of two of the nation’s eight uniformed services, providing critical support in public health, environmental protection, and national security. However, despite their service commitments, and the fact that they are treated as Veterans when they retire or separate from service, these officers currently do not receive the same state tax benefits as their counterparts in the armed forces. Their exclusion from this tax benefit is an oversight that HB47 seeks to correct. I am a resident of Fairfax County, VA for the past 12 years and am a retired USPHS officer that still resides in Fairfax County, VA. This is an expensive area to live in and this parity with our armed forces counterparts will help allow retirees of USPHS and NOAA to continue living in Virginia. Thank you for your consideration of this request. I appreciate your leadership and commitment to supporting those who have dedicated their careers to serving our nation. CAPT (Ret.) Sandeep Saini USPHS