Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB420 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 420
5	5	September 19, 2023 - Introduced by Representatives KRUG, BRANDTJEN, BROOKS,
6	6	GUSTAFSON, MURSAU, ORTIZ-VELEZ, STEFFEN, SUBECK and TUSLER, cosponsored
7	7	by Senator BALLWEG. Referred to Committee on Ways and Means.
8	8	*AUTHORS SUBJECT TO CHANGE*
9	9	AN ACT to amend 71.05 (1) (an) and 71.83 (1) (a) 6. of the statutes; relating to:
10	10	exempting from taxation certain pension payments received by an individual
11	11	for service in the U.S. Foreign Service.
12	12	Analysis by the Legislative Reference Bureau
13	13	This bill exempts from taxation all retirement payments received from the
14	14	federal government that relate to service with the U.S. Foreign Service, provided
15	15	that such payments are not already exempt from taxation. Currently, the pension
16	16	benefits of certain public employees are exempt from state taxation. The pensions
17	17	that are exempt include payments received from the U.S. Civil Service Retirement
18	18	System, the U.S. military employee retirement system, the Milwaukee city and
19	19	county retirement systems, the Milwaukee public school teachers' retirement fund,
20	20	the Wisconsin state teachers' retirement fund, and the sheriff's annuity and benefit
21	21	fund of Milwaukee County. For most of these pension plans, the exemption applies
22	22	only to persons who were members of or retired from the plans as of December 31,
23	23	1963, although this limitation does not apply to retirement payments received from
24	24	the U.S. military employee retirement system or from payments received from the
25	25	federal government that relate to service with the U.S. Coast Guard, the
26	26	commissioned corps of the National Oceanic and Atmospheric Administration, or the
27	27	commissioned corps of the U.S. Public Health Service. Similarly, the limitation does
28	28	not apply to the exemption created in this bill for the Foreign Service Pension
29	29	System.
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32	32	3 - 2 -2023 - 2024 Legislature LRB-0995/1
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34	34	ASSEMBLY BILL 420
35	35	Because this bill relates to an exemption from state or local taxes, it may be
36	36	referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
37	37	as an appendix to the bill.
38	38	For further information see the state fiscal estimate, which will be printed as
39	39	an appendix to this bill.
40	40	The people of the state of Wisconsin, represented in senate and assembly, do
41	41	enact as follows:
42	42	SECTION 1. 71.05 (1) (an) of the statutes is amended to read:
43	43	71.05 (1) (an) Uniformed services, foreign service, retirement benefits. All
44	44	retirement payments received from the U.S. government that relate to service with
45	45	the coast guard, the commissioned corps of the national oceanic and atmospheric
46	46	administration, or the commissioned corps of the public health service, or the foreign
47	47	service, to the extent that such payments are not exempt under par. (a) or (am) or sub.
48	48	(6) (b) 54.
49	49	SECTION 2. 71.83 (1) (a) 6. of the statutes is amended to read:
50	50	71.83 (1) (a) 6. `Retirement plans.' Any natural person who is liable for a
51	51	penalty for federal income tax purposes under section 72 (m) (5), (q), (t), and (v), 4973,
52	52	4974, 4975, or 4980A of the Internal Revenue Code is liable for 33 percent of the
53	53	federal penalty unless the income received is exempt from taxation under s. 71.05
54	54	(1) (a), (am), or (an) or (6) (b) 54. The penalties provided under this subdivision shall
55	55	be assessed, levied, and collected in the same manner as income or franchise taxes.
56	56	SECTION 3.0Initial applicability.
57	57	(1) This act first applies to taxable years beginning on January 1 of the year
58	58	in which this subsection takes effect, except that if this subsection takes effect after
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76	76	LRB-0995/1
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78	78	SECTION 3
79	79	ASSEMBLY BILL 420
80	80	July 31, this act first applies to taxable years beginning on January 1 of the year
81	81	following the year in which this subsection takes effect.
82	82	(END)
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