May 20, 2003, Introduced by Reps. Robertson, Huizenga, Tabor, DeRossett, Ward, Stakoe, Garfield, Nitz, Hager, Woronchak, Nofs, Van Regenmorter, Acciavatti, Pappageorge, Sheen, Shaffer, Middaugh, Koetje, Ruth Johnson, Casperson, Milosch, Taub, Voorhees, Kooiman, Vander Veen, Amos, Ehardt, Pumford, Shulman, Brandenburg, Rocca, Hoogendyk, Wenke, Moolenaar, Stahl, Howell, Shackleton, Bisbee, Palmer, Caswell and LaJoy and referred to the Committee on Tax Policy.
A bill to amend 1964 PA 284, entitled
"City income tax act,"
by amending section 32 of chapter 2 (MCL 141.632).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 CHAPTER 2
2 Sec. 32. (1)
The following payments and benefits amounts
3 received by any person are not subject to the tax under this
4 ordinance:
5 (a) Gifts and bequests.
6 (b) Proceeds of
insurance , annuities, pensions and or
7 annuity, pension, or retirement benefits. Amounts received for
8 personal injuries, sickness, or disability are excluded from
9 taxable income only to
the extent provided those amounts are
10 excluded by the federal
internal revenue code.
11 (c) Welfare relief, unemployment benefits including
1 supplemental unemployment
benefits, and workmen's or worker's
2 compensation or similar
payments. from whatever source derived.
3 (d) Amounts received by charitable, religious, educational,
4 and or other similar nonprofit organizations which
that are
5 exempt from taxation
under the federal internal revenue code.
6 (e) Amounts received by supplemental unemployment benefit
7 trusts or pension, profit
sharing, and or stock bonus trusts
8 qualified and exempt
under the federal internal revenue code.
9 (f) Interest from obligations
of the United States , the
10 states or subordinate
units of government of the states and or
a
11 state or subdivision of a state or gains or losses on the sales
12 sale of obligations of the United States.
13 (g) Net profits of financial institutions and insurance
14 companies.
15 (h) Amounts paid to an employee as reimbursement for expenses
16 necessarily and actually incurred by him or her in the actual
17 performance of his or
her services and deductible as such by
18 the his or her employer.
19 (i) Compensation received for service in the armed forces of
20 the United States.
21 (2) In addition to the exclusions provided in subsection (1),
22 a city may, by amending this ordinance, provide for the exclusion
23 from the tax imposed under this ordinance compensation received
24 by a taxpayer while the taxpayer is on active military duty in
25 the armed forces of the United States in an area designated as a
26 combat zone by the president of the United States.