Rep. Laura Cox and the state House today advanced legislation to significantly lower taxes for Michigan families.
The bills would increase personal exemptions for Michigan taxpayers and their dependents on state income taxes – a move that will save families hundreds of dollars overall.
“Our state budget is in good condition and our economy continues to improve,” said Cox, who chairs the House Appropriations Committee. “This is a fantastic time to provide tax relief. In fact, it’s long overdue. Michigan families deserve this tax cut and I am pleased to help deliver it.”
The legislation ensures Michigan taxpayers will be able to continue claiming personal exemptions on their income taxes, a necessary step after federal tax reforms signed into law in December. In addition, the bills increase the state personal exemption from the current $4,000 to $4,900 by the 2021 tax year.
That translates into significant savings. The technical fix related to the federal reforms saves $170 per person per year — or $680 for a family of four – on state income taxes. The plan to raise the personal exemption to $4,900 provides $102 in additional relief for a family of four.
The legislation also allows taxpayers to continue to claim current city income tax exemptions.
Senate Bills 748 and 750 also were approved by the Senate today, meaning the legislation advances to Gov. Rick Snyder for his consideration.