A plan to provide tax relief to younger police and fire department retirees not covered by Social Security – introduced by state Rep. Joe Bellino – continues to advance in the Michigan Legislature.
Bellino’s bill was approved last week by the Senate Finance Committee. The bill is headed to the Senate floor, where it is closer to becoming state law.
The Michigan House already has approved Bellino’s plan.
“This bill is a key first step toward my ultimate goal of providing relief for all Michigan taxpayers,” said Bellino, R-Monroe. “Police and fire employees are a great place to start that effort. They spend their whole careers working to keep Michigan safe and making our state a better place to live and raise a family. I strongly believe they have earned the right to be able to keep more of their own money when they retire.”
The bill primarily affects Michigan public safety employees who were born after 1952 and retired before 2013, bringing their tax structure more in line with many other retirees. The legislation provides an increased tax deduction for retirement or pension benefits from government employment that was not covered by Social Security.
The bill allows these retirees to claim the same sort of income tax deductions already allowed for retirees covered by Social Security. A similar fix for retirees born before 1953 and not covered by Social Security became part of state law several years ago.
The difference in taxation has been an issue since Michigan adopted broad tax reforms in 2011.
Bellino’s bill would benefit retirees from public safety departments across the state, including hundreds of members of the Retired Detroit Police and Fire Fighters Association.
The legislation is House Bill 4396.
Rep. Bellino represents Sumpter Township in the state House.
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