AN ACT EXEMPTING SOCIAL SECURITY BENEFITS AND PENSION OR ANNUITY INCOME FROM THE PERSONAL INCOME TAX.

SB 735 would change the state tax code to exempt all Social Security benefits and pension or annuity income from personal income tax. This directly affects every resident taxpayer who receives these types of income, including retirees and disabled individuals. The bill achieves this by amending Section 12-701 of the general statutes to remove these income sources from taxable income. The policy change would reduce tax liability for affected individuals without altering existing benefit amounts. The bill's purpose is explicitly stated as providing tax relief for these specific income streams.