Bill > H2604

This bill proposes to amend existing Massachusetts General Laws, specifically chapter 32, section 19, which deals with the taxation of state pensions. The key provision is the insertion of language that clarifies the tax exemption for pensions received by retired public employees. Currently, there is an exemption from income taxes levied under chapter 62, which is the chapter governing income tax in Massachusetts. This bill specifies that this exemption will now be applicable to the first $50,000 of pension income received annually by these retired public employees, meaning any pension income above that amount would be subject to taxation. The act is set to take effect immediately upon its passage.