L0260.01I< p>

SB 12 -- For all tax years beginning after December 31, 1997, this act establishes an income tax exemption for income obtained from privately funded annuities, pensions, or other retirement allowances. Retirees would be allowed to deduct $6,000 if filing an individual return with an adjusted gross income less than $25,000 or if filing a combined return with an adjusted gross income less than $32,000. This provision is identical to the exemption granted to state and federal retirees in 1990 as a result of a U.S. Supreme Court ruling.

This act is similar to SB 585 (1996) and SB 41 (1997) and is similar to provisions in SCS/HS/HCS/HB 1172 (1996) and SB 15 (1997).

TOM CRAWFORD