2011 House Bill 4480 / Public Act 41

Repeal pension income tax exemption

Introduced in the House

March 23, 2011

Introduced by Rep. Jud Gilbert (R-81)

To no longer exempt state 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 52 (details)

Received in the Senate

May 4, 2011

Referred to the Committee on Reforms, Restructuring, and Reinventing

May 12, 2011

Reported without amendment

With the recommendation that the bill pass.

Failed in the Senate 19 to 18 (details)

To no longer exempt state 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. Note: The bill was defeated on this vote (but passed later) because a majority of those elected and serving is needed, which is 20 votes.

Motion to reconsider by Sen. Arlan Meekhof (R-30)

The vote by which the bill was defeated.

The motion passed by voice vote

Received

To no longer exempt state 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. Note: The bill was defeated on this vote (but passed later) because a majority of those elected and serving is needed, which is 20 votes.

Failed in the Senate 19 to 18 (details)

Motion to reconsider by Sen. Arlan Meekhof (R-30)

The vote by which the bill was defeated.

The motion passed by voice vote

Received

Passed in the Senate 19 to 19 (details)

To no longer exempt state 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. Note: The Lt. Governor broke the tie vote by voting in favor.

Signed by Gov. Rick Snyder

May 25, 2011