Measure earns bipartisan support from House Finance Committee

Retired state corrections officers moved one step closer to long-overdue tax relief this week, as the House Finance Committee approved state Rep. Kathy Schmaltz’s plan to eliminate the state income tax on their retirement income.

Schmaltz, R-Jackson, said the measure would correct a glaring oversight in state law by fully exempting Michigan Department of Corrections retirees from paying state income tax on their pension or retirement income, just like their peers who served in local jails.

“Our state corrections officers have some of the toughest jobs in public service. They work long shifts in stressful, sometimes dangerous environments, and their sacrifices deserve to be recognized,” Schmaltz said. “Right now, retired state corrections officers are left out of the tax relief other first responders receive — and that’s just wrong. This plan ensures they get the same respect and financial security in retirement.”

In 2023, the Legislature approved a tax relief plan for retirees that included police officers, firefighters, and county corrections officers — but omitted those who served in state prisons. Schmaltz’s bill would add these state workers to the list and allow them to fully deduct their pensions from state income taxes.

During testimony before the Finance Committee, Schmaltz emphasized that the exclusion of state corrections officers makes no sense.

“For reasons I do not understand, our state corrections officers were not included in the original relief. My bill simply adds them to the list,” Schmaltz said. “We need to show corrections officers we support them, in and out of uniform. Giving them the same tax relief as other first responders is a step in the right direction.”

Schmaltz also stressed that the policy change could help alleviate Michigan’s ongoing corrections officer staffing shortage.

“This bill is about fairness, but it’s also about the future of our corrections system,” she said. “Offering this kind of support in retirement helps us attract new recruits and retain experienced officers. It sends a clear message that we see them, value them, and have their backs.”

House Bill 4201 now awaits a vote before the full House of Representatives.