2001 - 2002 LEGISLATURE
May 14, 2001 - Introduced by Representatives Loeffelholz, Petrowski, Musser,
Leibham, Starzyk, Huebsch, Suder, Pettis, Gundrum, Wade, Jensen, Lippert,
Walker, Turner, Ainsworth, Krawczyk, Skindrud, D. Meyer, Vrakas, Nass,
Kedzie, Ladwig, Hoven, Freese, J. Fitzgerald, Sykora, Boyle, Gronemus,
Schneider, Ryba, Stone, Albers, Plouff, Lassa, Owens, Gard, Townsend, Ott,
Rhoades, Hundertmark, Johnsrud, Riley, Hahn, Seratti, Friske and
McCormick, cosponsored by Senators Darling, Roessler, Lazich, Harsdorf
and Schultz. Referred to Committee on Veterans and Military Affairs.
Referred to Joint survey committee on Tax Exemptions.
1An Act to create
71.05 (1) (am) of the statutes; relating to: exempting from
2income taxation all military pension payments.
Analysis by the Legislative Reference Bureau
Under current law, the pension benefits of certain public employees are exempt
from state taxation. The pensions that are exempt include payments received from
the U.S. civil service retirement system, the U.S. military employee retirement
system, the Milwaukee city and county retirement systems, the police officer's
annuity and benefit fund of Milwaukee, the Milwaukee public school teachers'
retirement fund, the Wisconsin state teachers' retirement fund, and the sheriff's
annuity and benefit fund of Milwaukee County. For all of these pension plans, the
exemption applies only to persons who were members of or retired from the plans as
of December 31, 1963.
This bill exempts from taxation all payments received from the U.S. military
employee retirement system, to the extent that such payments are not currently
This bill will be referred to the joint survey committee on tax exemptions for a
detailed analysis, which will be printed as an appendix to this bill.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB389, s. 1
71.05 (1) (am) of the statutes is created to read:
(am) Military retirement systems.
All payments received from the 3
U.S. military employee retirement system, to the extent that such payments are not 4
exempt under par. (a).
(1) This act first applies to taxable years beginning on January 1 of the year 7
in which this subsection takes effect, except that if this subsection takes effect after 8
July 31 this act first applies to taxable years beginning on January 1 of the year 9
following the year in which this subsection takes effect.