Michigan Supreme Court Upholds Tax On Pension

LANSING (WWJ) - The Michigan Supreme Court says a new law taxing public pensions does not violate the state Constitution.

WWJ's Lansing Bureau Tim Skubick explains that the court has said that this law is not a violation of the constitution - taxing the pensions of senior citizens.

Starting January 1 barring any other judicial interference or rulings - everyone under the age of 67 in Michigan will begin to pay the state income tax 4.35 percent on their pensions - for the first time in state history - this has been legalized - this was one of the center pieces of the governor's revision plan upheld by the Supreme Court on a 4-3 vote reports Skubick.

The advisory opinion is a major victory for Gov. Rick Snyder, who signed the sweeping tax changes earlier this year.

-READ MICHIGAN SUPREME COURT OPINION - pdf file.

-SYLLABUS - MICHIGAN SUPREME COURT - pdf file.

The opponents of the law - AARP (American Association of Retired Persons) - say this is really a graduated income tax and therefore violated the state constitution.

State officials expect the law will generate as much as $330 million in 2013.