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Bills · 2009-2010 Regular Session

SB 65

Died at session end Official bill text Atom feed

expanding and increasing the tax exemption for retirement plan income received by an individual.

  1. Introduced, stopped here
  2. Passes Senate, not reached
  3. Passes Assembly, not reached
  4. Governor signs, not reached
  5. Law, not reached

Unfamiliar terms? Glossary

What this bill does

Plain-language analysis by the nonpartisan Legislative Reference Bureau

Under current law, 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 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 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 U.S. 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. Also

under current law, up to $5,000 of payments or distributions received by certain

individuals from a qualified retirement plan under the Internal Revenue Code, or

from certain individual retirement accounts, are exempt from taxation. To be

eligible, the individual must be at least 65 years old and have federal adjusted gross

income (FAGI) under $15,000, or under $30,000 if married.

Under this bill, the $5,000 exemption for certain individuals who are at least

65 years old and have limited FAGI applies only for taxable year 2009. Beginning

with taxable year 2010, the $5,000 exemption for payments or distributions received

from a qualified retirement plan may still be claimed, to the extent that such

amounts are not already exempt from taxation, but the exemption is not limited to

individuals who are at least 65 years old and have FAGI of less than $15,000, or less

than $30,000 if married. Under the bill, the exemption amount increases each year

from $5,000 to $10,000 in 2011, $15,000 in 2012, and $20,000 in 2013 and thereafter.

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.

What it would cost

Fiscal estimates filed by state agencies, as official PDFs

Sponsors

Introduced by: A. Lasee (R) , Darling (R) , Hopper (R) , Kanavas (R) , Kedzie (R) , Lazich (R) , Leibham (R) , Schultz (R)

21 cosponsors

Ballweg (R) , Bies (R) , Brooks (R) , Davis (R) , Gunderson (R) , Gundrum (R) , J. Ott (R) , Kerkman (R) , LeMahieu (R) , Lothian (R) , Meyer (R) , Murtha (R) , Nass (R) , Petersen (R) , Rhoades (R) , Roth (R) , Spanbauer (R) , Townsend (R) , Vos (R) , Ziegelbauer (I) , Zipperer (R)

Full history

  1. Feb 18, 2009 · Senate

    Introduced by Senators Kedzie, Darling, Lazich, Kanavas, Leibham, Hopper, Schultz and A. Lasee;Cosponsored by Representatives Lothian, Nass, Kerkman, Ziegelbauer, Townsend, Davis, Brooks, Meyer, Rhoades, Roth, LeMahieu, Gunderson, Vos, Gundrum, Zipperer, Murtha, Spanbauer, Ballweg, Petersen, J. Ott and Bies

  2. Feb 18, 2009 · Senate

    Read first time and referred to joint survey committee on Tax Exemptions

  3. Apr 2, 2009 · Senate

    Fiscal estimate received

  4. Apr 28, 2010 · Senate

    Failed to pass pursuant to Senate Joint Resolution 1