LRB-2786/1
MES:kjf
2019 - 2020 LEGISLATURE
December 2, 2019 - Introduced by Representatives Krug, Ohnstad, Tusler and
Horlacher. Referred to Committee on Ways and Means.
AB640,1,3
1An Act to amend 71.05 (1) (an) of the statutes;
relating to: exempting from
2taxation certain pension payments received by an individual for service in the
3U.S. Foreign Service.
Analysis by the Legislative Reference Bureau
This bill exempts from taxation all retirement payments received from the
federal government that relate to service with the U.S. Foreign Service, provided
that such payments are not already exempt from taxation. Currently, 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 Milwaukee public school teachers' retirement fund,
the Wisconsin state teachers' retirement fund, and the sheriff's annuity and benefit
fund of Milwaukee County. For most of these pension plans, the exemption applies
only to persons who were members of or retired from the plans as of December 31,
1963, although this limitation does not apply to retirement payments received from
the U.S. military employee retirement system or from payments received from the
federal government that relate to service with the U.S. Coast Guard, the
commissioned corps of the National Oceanic and Atmospheric Administration, or the
commissioned corps of the U.S. Public Health Service. Similarly, the limitation does
not apply to the exemption created in this bill for the Foreign Service Pension
System.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the 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:
AB640,1
1Section
1. 71.05 (1) (an) of the statutes is amended to read:
AB640,2,62
71.05
(1) (an)
Uniformed services
, foreign service, retirement benefits. All
3retirement payments received from the U.S. government that relate to service with
4the coast guard, the commissioned corps of the national oceanic and atmospheric
5administration,
or the commissioned corps of the public health service,
or the foreign
6service, to the extent that such payments are not exempt under par. (a), (ae), or (am).
AB640,2
7Section
2.
Initial applicability.
AB640,2,118
(1) This act first applies to taxable years beginning on January 1 of the year
9in which this subsection takes effect, except that if this subsection takes effect after
10July 31 this act first applies to taxable years beginning on January 1 of the year
11following the year in which this subsection takes effect.
