State Rep. Joseph Graves reintroduced legislation to repeal pension tax changes that went into effect in 2012.
House Bill 4130 is a reintroduction of a bill he proposed last year to repeal recent pension tax changes.
"I continue to hear concerns from my constituents about how pension tax changes have affected them," said Graves, R-Argentine Township. "I did not support changes to how pensions are taxed and still believe we should revert back to the previous pension tax structure. While I was not able to get this legislation through last session, I remain committed to repealing this tax change. I am introducing this legislation again in order to help seniors who have already retired, are on fixed incomes and didn't have a way to plan for this tax change."
Graves has written about his opinions about the pension tax on Fenton Patch.
Prior to 2012, all public pensions were tax-free in Michigan and private sector pensions had substantial personal exemptions. The new law made changes to both the public and private pension exemption amount for those born after 1946. Full details of the new tax rates can be found here.
HB 4130 was referred to the House Committee on Tax Policy.
*Information provided by Michigan House Republicans.