Sen. Zorn co-sponsors income tax relief bill
LANSING, Mich. — Sen. Dale Zorn has co-sponsored new legislation to preserve the personal exemption on the state income tax and provide additional tax relief for Michigan families.
“Throughout my time in the Legislature, I have worked to improve our state and do my best to ensure Michigan provides essential services to its residents in an effective and efficient manner,” said Zorn, R-Ida. “As a result of our efforts, we have a growing economy that is creating jobs. We now have an opportunity to help hardworking Michigan residents by giving them responsible and affordable tax relief.”
The federal Tax Cuts and Jobs Act signed in December streamlines the exemption process and effectively ends the federal personal exemption. Since the state personal exemption is based on the federal return, without a revision to state law, Michigan taxpayers would no longer be able to claim personal exemptions on their state taxes.
Senate Bill 748 makes necessary changes to maintain the state personal exemption and also boost the exemption by an additional $500 to $4,800 by 2021. The state personal exemption is currently scheduled to increase from $4,000 to $4,300 over the next three years.
Without SB 748, Michigan taxpayers could face a state income tax hike of nearly $1.5 billion.
“I co-sponsored this critical reform to stop an unintended and unnecessary tax hike on state taxpayers and to provide an additional tax break for Michigan families,” Zorn said.
The bill has been referred to the Senate Finance Committee, which is expected to hold a public hearing on the measure on Tuesday.