Supreme Court upholds most of the pension tax

In an opinion released yesterday, the Michigan Supreme Court upheld the constitutionality of most of the changes to Michigan's income tax on pensions and IRA distributions. (We previously discussed it here.)

The court did find that the provision that phased out eligibility for the exemption for higher-income taxpayers did create a graduated income tax, in violation of Article 9, section 7 of the state constitution. This part of the new law will need to be redone or eliminated.