LANSING, Mich. — Legislation co-sponsored by Sen. Ken Horn that will ensure Michigan residents are able to claim personal exemptions on their state taxes received final approval from the Legislature Wednesday afternoon.
“Passing these bills is a major step for our state,” Horn said. “People are already starting to see the effects of the recent federal reforms in their paychecks and I think we need to keep that relief coming for Michigan residents.”
Some confusion has surrounded the recently approved Tax Cuts and Jobs Act because of language that sets the federal personal exemption to zero. Though the exemption is not explicitly eliminated by the new law, Michigan’s current state income tax law ties the state’s personal exemptions to the federal number of exemptions. Without a revision to state law, Michigan taxpayers would no longer be able to claim the personal exemptions on their state taxes.
Senate Bills 748 and 750 will ensure all personal exemptions remain. SB 748 will guarantee Michigan taxpayers can continue claiming the personal exemption on their state income taxes and SB 750 will make the same assurance for city income tax exemptions.
“Our budget has stabilized and our state’s comeback is more apparent now than ever.” Horn said. “These bills, coupled with the recent federal changes, will provide much-deserved relief to families throughout my district.”
Both bills will now move to Gov. Rick Snyder’s desk for consideration.