LRB-3768/1
MES:kmg:rs
2003 - 2004 LEGISLATURE
February 11, 2004 - Introduced by Senators Wirch, Schultz, Breske, Hansen,
Roessler, Chvala, Lassa, M. Meyer and Carpenter, cosponsored by
Representatives Seratti, J. Lehman, Ladwig, Hines, Albers, Plouff,
Loeffelholz, J. Wood and Gunderson. Referred to Joint Survey Committee
on Tax Exemptions.
SB453,1,2
1An Act to create 71.05 (1) (ap) of the statutes;
relating to: exempting from
2taxation certain amounts of pension income received by an individual.
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 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.
To the extent that they are not currently exempt from taxation, current law also
exempts all retirement payments received from the U.S. Military Employee
Retirement System and all retirement payments received from the federal
government related to service with the Coast Guard or the commissioned corps of
either the National Oceanic and Atmospheric Administration or the Public Health
Service.
This bill exempts from taxation up to $5,000 of pension payments received each
year by an individual, if such payments are not already exempt from taxation.
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:
SB453, s. 1
1Section
1. 71.05 (1) (ap) of the statutes is created to read:
SB453,2,52
71.05
(1) (ap)
Pension income. Except for a payment that is exempt under par.
3(a), (am), or (an), or that is exempt as a railroad retirement benefit, up to $5,000 of
4payments received each year by an individual from a retirement plan offered by an
5employer.
SB453,2,107
(1) This act first applies to taxable years beginning on January 1 of the year
8in which this subsection takes effect, except that if this subsection takes effect after
9July 31 this act first applies to taxable years beginning on January 1 of the year
10following the year in which this subsection takes effect.
