HB 120 - Current law exempts from state income tax the first $6,000 of public retirement benefits, if the taxpayer is a single filer with adjusted gross income of less than $25,000 or married filers with adjusted gross income of less than $32,000. For retirement benefits from private sources, the exemption is phased in to allow the full $6,000 exemption in 2002. This act eliminates the phase in for private source benefits by allowing the full exemption for tax year 1999 and later years. The act also extends the adjusted gross income limits by phasing out the pension exemption amount by one dollar for each dollar of income over the limits.

This act is similar to CCS/SS/SCS/HS/HB 516.
RUSS HEMBREE