SENATE BILL No. 1297

June 7, 2006, Introduced by Senators ALLEN, BISHOP, PATTERSON, GOSCHKA, KUIPERS, BARCIA, GARCIA, OLSHOVE and TOY and referred to the Committee on Finance.

      A bill to amend 1967 PA 281, entitled

"Income tax act of 1967,"

by amending section 506 (MCL 206.506), as amended by 1996 PA 484.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1        Sec. 506.  (1) "Eligible serviceperson", "eligible

 2  veteran", and "eligible widow or widower"  means mean a

 3  serviceperson, veteran, or widow or widower, whose income as

 4  defined in this chapter is not more than $7,500.00 per year

 5  unless the serviceperson, veteran, or widow or widower receives

 6  compensation paid by the veterans administration or the armed

 7  forces of the United States for service incurred disabilities and

 8  who meets the requirements of the following schedule:

9      War               Person       Service in    Disability  Taxable

1                                         War            %        Value

2                                                 Allowance

3  Indian           Veteran or        3 months, or     No       $3,500.00

4  Civil            veteran's widow   1 day with   requirement  $5,500.00

5  Spanish-         or widower        discharge                

6  American                           for service-             

7  Mexican                            connected                

8                             disability

9  World War I      Widow or widower  3 months, or     No       $2,500.00

10 World War II     of nondisabled    1 day with   requirement  $4,500.00

11 Korean           or nonpensioned   discharge                

12                  veteran           for service-             

13                                    connected                

14                            disability

15 All wars or      Pensioned veteran     Any          No       $3,500.00

16 presidential     or veteran's                   requirement  $5,500.00

17 executive        widow or widower                           

18 order or                                                    

19 presidential                                                

20        proclamation

21 All wars or      Veteran with          Any         10-50     $3,500.00

22 presidential     service-connected                           $5,500.00

23 executive        disability or                              

24 order or         veteran's widow                            

25 presidential     or widower                                 

26        proclamation

27 All wars or      Veteran with          Any        60-70-80   $4,000.00

28 presidential     service-connected                           $6,000.00

29 executive        disability or                              

30 order or         veteran's widow                            

31 presidential     or widower                                 

32        proclamation

33 All wars or      Veteran with          Any         90-100    $4,500.00

34 presidential     service-connected                           $6,500.00

35 executive        disability or                              

36 order or         veteran's widow                            

37 presidential     or widower                                 

38        proclamation

39 All wars or      Widow or widower      Any          No       $4,500.00

40 presidential     of veteran dying               requirement  $6,500.00

41 executive        in service                                 

42 order or                                                    

43 presidential                                                

44        proclamation

45 Current          Serviceperson or      Any           No      $3,500.00

46 service          serviceperson's                requirement  $5,500.00

1                   widow or widower                           

 2        Enacting section 1. This amendatory act takes effect for tax

 3  years that begin on and after January 1, 2007.