Bill would exempt some police from pension tax
LANSING, MI –
Michigan lawmakers are passing follow-up legislation to bills that change how certain retirement income will be taxed in the state.
Police officers, firefighters and other government agency employees who don't receive Social Security would be exempt from state income tax on at least some of their pension income under terms of a bill that passed the Senate by a 35-2 vote Tuesday. The measure advances to the House.
Some supporters of the new bill say it's a fairness issue.
A new Michigan law that will tax many forms of retirement income generally exempts Social Security. But the workers covered in the bill passed Tuesday don't receive Social Security and would have their other retirement income taxed if the law weren't altered.