HOUSE BILL No. 5329


     October 23, 2001, Introduced by Reps. Schauer, Bernero, Anderson, Dennis, Basham, Rivet, Bogardus, Bovin, Spade, Mans, Gieleghem,
Pappageorge, Minore, Neumann, Drolet and Rich Brown and referred to the Committee on Tax Policy.


        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:

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

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      and "eligible widow or widower"  means  MEAN a serviceperson,

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      veteran, or widow or widower, whose income as defined in this

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      chapter is not more than $7,500.00 per year unless the service-

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      person, veteran, or widow or widower receives compensation paid

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      by the veterans administration or the armed forces of the United

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      States for service incurred disabilities and who meets the

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      requirements of the following schedule:

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                                                                 Taxable
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                                                                  Value
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        War          Person      Service in War   Disability %  Allowance
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      Indian       Veteran or    3 months, or 1         No     $3,500.00
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      Civil        veteran's     day with dis-     requirement
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      Spanish-     widow or      charge for serv-
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      American     widower       ice-connected
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      Mexican                    disability
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      World War I  Widow or      3 months, or 1         No     $2,500.00
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      World War II widower of    day with dis-     requirement
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      Korean       nondisabled   charge for serv-
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                   or nonpen-    ice-connected
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                   sioned        disability
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                   veteran
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      All wars or  Pensioned        Any                 No     $3,500.00
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      presidential veteran or                      requirement
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      executive    veteran's
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      order or     widow or
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      presidential widower
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      proclamation
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      All wars or  Veteran with     Any               10-50    $3,500.00
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      presidential service-con-
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      executive    nected dis-
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      order or     ability or
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      presidential veteran's
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      proclamation widow or
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                   widower
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      All wars or  Veteran with     Any              60-70-80  $4,000.00
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      presidential service-con-
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      executive    nected dis-
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      order or     ability or
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      presidential veteran's
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      proclamation widow or
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                   widower
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      All wars or  Veteran with     Any               90-100   $4,500.00
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      presidential service-con-
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      executive    nected dis-
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      order or     ability or
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      presidential veteran's
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      proclamation widow or
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                   widower
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      All wars or  Widow or         Any                 No     $4,500.00
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      presidential widower of                      requirement
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      executive    veteran dying
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      order or     in service
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      presidential

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      proclamation
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      Current      Serviceperson    Any                 No     $3,500.00
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      service      or                              requirement
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                   serviceperson's
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                   widow or
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                   widower
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           (2) FOR THE TAX YEARS THAT BEGIN AFTER DECEMBER 31, 2000,

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      THE TAXABLE VALUE ALLOWANCE AMOUNTS ALLOWED UNDER SUBSECTION (1)

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      SHALL BE ADJUSTED BY THE PERCENTAGE INCREASE IN THE UNITED STATES

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      CONSUMER PRICE INDEX FOR THE IMMEDIATELY PRECEDING CALENDAR

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      YEAR.  AS USED IN THIS SUBSECTION, "UNITED STATES CONSUMER PRICE

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      INDEX" MEANS THE UNITED STATES CONSUMER PRICE INDEX FOR ALL URBAN

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      CONSUMERS AS DEFINED AND REPORTED BY THE UNITED STATES DEPARTMENT

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      OF LABOR, BUREAU OF LABOR STATISTICS, AND AS CERTIFIED BY THE

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      STATE TREASURER.
































   04131'01          Final page.                            RJA