LRB-2339/1
MES:kmg&jlg:jf
1997 - 1998 LEGISLATURE
March 11, 1997 - Introduced by Representatives Harsdorf, Kreibich and Ryba,
cosponsored by Senator Clausing, by request of Ruth Kuss. Referred to Joint
survey committee on Tax Exemptions.
AB168,1,3
1An Act to renumber 71.05 (1) (a); and
to create 71.05 (1) (a) 2. of the statutes;
2relating to: exempting from income taxation the pension benefits of certain
3teachers who taught in other states.
Analysis by the Legislative Reference Bureau
Under current law, the pension benefits of certain public employes 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 employe 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 creates a similar exemption for certain public school teachers who
taught in other states. Under the bill, if a teacher lived in Wisconsin on December
31, 1963, and taught at a public elementary or secondary school in another state, the
pension income received by that teacher from the state in which he or she taught is
exempt from taxation by this state.
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:
AB168, s. 1
1Section
1. 71.05 (1) (a) of the statutes is renumbered 71.05 (1) (a) 1.
AB168, s. 2
2Section
2. 71.05 (1) (a) 2. of the statutes is created to read:
AB168,2,93
71.05
(1) (a) 2. All payments received from the retirement system of another
4state, or from the retirement system of a local unit of government that is in another
5state, by a retired public elementary or secondary school teacher who taught at a
6public elementary or secondary school in another state and resided in Wisconsin on
7December 31, 1963, to the extent that the payments relate to the retired teacher's
8work as a public elementary or secondary school teacher in another state, but such
9exemption shall not exclude from gross income tax sheltered annuity benefits.
AB168,2,1211
(1) This act first applies to pension payments that are made on the effective
12date of this subsection.
