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Columbia, SC (WLTX) -- One lawmakers says South Carolina has fallen behind its neighbors when it some to retired military service members.

Representative Murrell Smith has proposed a bill that will make military retirement income exempt from state income tax.

He says our state is one of the only ones in the Southeast that has not taken this kind of action.

Smith says the bill would help South Carolina keep its highly trained, retired military citizens.

He also says it could help when the next round of military base realignment and closures, or BRAC, comes around.

"We want to be the most military friendly state in this country and this is an example of showing them how we appreciate their service by doing this income taxation exemption," said Smith.

If phased in over the three years, Smith says the change could amount to a drop in state money of about $5 million to $7 million a year. He says the bill still needs committee clearance before it can go before the full House.

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