By SHARON KILPATRICK

By SHARON KILPATRICK

Rappahannock New* Staff Writer

State Sen. Kevin Miller, R-26th Dist. introduced legislation last week that should reduce state income taxes for retirees collecting social security.

However, it will increase taxes for other Virginia taxpayers aged 62 or older.

Last year Sen. Miller became involved in a debate with Democrats in the General Assembly over r whether or not Virginia taxes social Security.

Sen. Miller claimed the state does tax social security. The Democrats, particularly House Majority Leader Richard Cranwell, claimed that the state does not tax social security. Both were partially right.

The state tax form allowed taxpayers to subtract from their federal adjusted gross income, social security that had been taxed at the federal level. However, taxpayers had to reduce their Virginia “age deduction” of $6,236 for those 62 through 4>4 and $12,472 for those 65 and older l>y the total of any social security benefits they had received, not just those taxed by the federal government.

1 The bill Sen. Miller introduced will eliminate reductions from the ■ age deduction for social security income, but the bill is designed to be revenue neutral, Sen. Miller said.

As a result the “age deduction” will be reduced to $3,700 for those 62 through 64 and $7,400 for those 65 ‘ and older. • This should mean lower taxes for those 62 through 64 who receive at least $2,536 from social security and those 65 and older who receive at least $5,072. For those 62 and older who do not receive social security, including those still working, the bill will mean higher taxes.