Vermont House Bill 846-An Act Relating to the Exemption of Military Retirement Pay from State Income Taxation. The bill proposes to exempt military retirement pay from State income taxation. It has the support of the Governor's office, the Vermont Chamber of Commerce and NGA-VT, your voice in Montpelier. Get involved: Whether you want to testify in front of a legislative committee, meet with legislators, or help with a NGA-VT hosted event; there are plenty of ways to have your voice heard. Signing the petition would help