2011 House Bill 4481 / Public Act 42

Repeal pension income tax exemption

Introduced in the House

March 23, 2011

Introduced by Rep. Jud Gilbert (R-81)

To no longer exempt public school employee pension income from the state income tax, as proposed by Gov. Rick Snyder as part of a plan to reduce the state business tax. Under current law, government employee pensions are completely exempt, and private sector retiree pension is exempt up to $45,120 on a single return and $90,240 on joint returns.

Referred to the Committee on Tax Policy

April 27, 2011

Reported without amendment

Without amendment and with the recommendation that the bill pass.

April 28, 2011

Passed in the House 56 to 50 (details)

In the Senate

May 12, 2011

Passed in the Senate 19 to 19 (details)

To no longer exempt public school employee pension income from the state income tax, as proposed by Gov. Rick Snyder as part of a plan to reduce the state business tax. Under current law, government employee pensions are completely exempt, and private sector retiree pension is exempt up to $45,120 on a single return and $90,240 on joint returns.

Reported without amendment

With the recommendation that the bill pass.

Signed by Gov. Rick Snyder

May 25, 2011

Received in the Senate

Aug. 4, 2011

Referred to the Committee on Reforms, Restructuring, and Reinventing