Representative Martin Howrylak of Troy joined the state Legislature today in giving final legislative approval to bills that increase personal exemptions for Michigan taxpayers and their dependents on income taxes.
“Increasing the personal exemption is a smart, sound strategy for lowering taxes,” said Howrylak, who has introduced his own version of legislation to reduce taxes in each of his three House terms. “This method lowers taxes for everyone, regardless of their age or income level. It will provide across-the-board relief for Michigan residents.”
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 preserves exemptions on city income taxes.
Senate Bills 748 and 750 were approved by both the House and Senate today. The bills advance to Gov. Rick Snyder for his consideration.