2011 Senate Bill 409 / 2012 Public Act 597

Revise income tax on pensions detail

Introduced in the Senate

June 7, 2011

Introduced by Sen. Goeff Hansen (R-34)

To exempt from the state income tax pension income received from working for a government agency whose employees were not covered by Social Security (which means they paid no payroll tax and received no Social Security credits while employed there).

June 14, 2011

Amendment offered by Sen. Bert Johnson (D-2)

To repeal the provision of Gov. Rick Snyder's <a href="http://www.michiganvotes.org/2011-HB-4361">tax reform and business tax cut</a> that partially eliminated some of the income tax exemption for pension income.

The amendment failed 18 to 20 (details)

Amendment offered by Sen. Bert Johnson (D-2)

To eliminate a provision that prohibits taking both the pension income exemption proposed by the bill and an exemption for those aged 67 and above on the first $20,000 in annual pension income ($40,000 on a joint return).

The amendment failed 19 to 19 (details)

Amendment offered by Sen. Goeff Hansen (R-34)

To revise the effective date of the bill so that it matches that of the recently adopted tax overhaul package.

The amendment passed by voice vote

Amendment offered by Sen. Bert Johnson (D-2)

To automatically repeal the provision of Gov. Rick Snyder's <a href="http://www.michiganvotes.org/2011-HB-4361">tax reform and business tax cut</a> that partially eliminated some of the income tax exemption for pension income, if the U.S. congress passes the Ryan budget cut and associated Medicare changes affecting those age 55 and under.

The amendment failed 16 to 22 (details)

Passed in the Senate 35 to 2 (details)

Received in the House

June 14, 2011

June 30, 2011

Amendment offered by Rep. Lisa Brown (D-39)

The amendment failed by voice vote

June 14, 2012

Substitute offered by Rep. Roy Schmidt (R-76)

To replace the previous version of the bill with one that revises details but does not change the substance as previously described.

The substitute passed by voice vote

Amendment offered by Rep. Joseph Graves (R-51)

To also exempt Michigan National Guard pension benefits from income tax.

The amendment passed by voice vote

Passed in the House 108 to 1 (details)

To exempt from the state income tax pension income received from working for a government agency whose employees were not covered by Social Security (which means they paid no payroll tax and received no Social Security credits while employed there).

Received in the Senate

Sept. 13, 2012

Dec. 6, 2012

Passed in the Senate 37 to 0 (details)

Received in the House

Dec. 6, 2012

In the Senate

Dec. 6, 2012

Motion by Sen. Arlan Meekhof (R-30)

That the bill be given immediate effect.

The motion passed 27 to 0 (details)

Motion to reconsider by Sen. Arlan Meekhof (R-30)

The vote by which the bill was passed.

The motion passed by voice vote

Received

Amendment offered by Sen. Goeff Hansen (R-34)

To strip out a provision making the proposed law retroactive to Jan. 1, 2012.

The amendment passed by voice vote

Amendment offered by Sen. Goeff Hansen (R-34)

To make the proposed law effective on Jan. 1, 2013.

The amendment passed by voice vote

Amendment offered by Sen. Goeff Hansen (R-34)

To postpone until July 2013 the proposed modifications to limitations on the exemption of pension income from the state income tax that were included in the Snyder business tax reform measures enacted in 2011.

The amendment passed by voice vote

Amendment offered by Sen. Bert Johnson (D-2)

To tie-bar the bill to Senate Bill 519, meaning this bill cannot become law unless that one does also. SB 519 would repeal the provision of Gov. Rick Snyder's tax reform and business tax cut that partially eliminated some of the state income tax exemptions for pension income.

The amendment failed by voice vote

Passed in the Senate 28 to 0 (details)

To partially exempt from the state income tax pension income received from working for a government agency whose employees were not covered by Social Security (which means they paid no payroll tax and received no Social Security credits while employed there).

Dec. 12, 2012

Received

Amendment offered by Sen. Goeff Hansen (R-34)

To make a provision making National Guard pensions exempt from state income tax retroactive to Jan. 1, 2012.

The amendment passed by voice vote

Amendment offered by Sen. Bert Johnson (D-2)

To cap the proposed limitation on taxing certain pension income.

The amendment passed 19 to 18 (details)

Motion to reconsider by Sen. Arlan Meekhof (R-30)

The vote by which the amendments to the substitute were adopted.

The motion passed 25 to 12 (details)

Amendment offered by Sen. Bert Johnson (D-2)

To repeal the provision of Gov. Rick Snyder's tax reform and business tax cut that partially eliminated some of the state income tax exemptions for pension income.

The amendment failed 18 to 19 (details)

Passed in the Senate 35 to 1 (details)

To concur with the House-passed version of the bill.

Received in the House

Dec. 12, 2012

Dec. 14, 2012

Passed in the House 104 to 1 (details)

Signed by Gov. Rick Snyder

Dec. 31, 2012