AB 640

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.