SENATE BILL No. 211

February 14, 2001, Introduced by Senator JAYE and referred to the Committee on Finance.

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. The following payments and benefits received by

3 any person are not subject to the tax:

4 (a) Gifts and bequests.

5 (b) Proceeds of insurance, annuities, pensions, and retire-

6 ment benefits. Amounts received for personal injuries, sickness,

7 or disability are excluded from taxable income only to the extent

8 provided THOSE AMOUNTS ARE EXCLUDED by the federal internal

9 revenue code.

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1 (c) Welfare relief, unemployment benefits including

2 supplemental unemployment benefits, and workmen's compensation or

3 similar payments from whatever source derived.

4 (d) Amounts received by charitable, religious, educational,

5 and OR other similar nonprofit organizations which THAT are

6 exempt from taxation under the federal internal revenue code.

7 (e) Amounts received by supplemental unemployment benefit

8 trusts or pension, profit sharing, and OR stock bonus trusts

9 THAT ARE qualified and exempt under the federal internal revenue

10 code.

11 (f) Interest from obligations of the United States, the

12 states, or subordinate units of government of the states and

13 gains or losses on the sales of obligations of the United

14 States.

15 (g) Net profits of financial institutions and insurance

16 companies.

17 (h) Amounts paid to an employee as reimbursement for

18 expenses necessarily and actually incurred by him THE EMPLOYEE

19 in the actual performance of his OR HER services and deductible

20 as such by the employer.

21 (i) Compensation received for service in the armed forces of

22 the United States.

23 (J) FOR TAX YEARS BEGINNING AFTER 2001, INCOME RECEIVED FROM

24 THE SALE OF REAL PROPERTY OWNED BY THAT PERSON.

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