LANSING, Mich. — Gov. Rick Snyder on Wednesday signed into law Senate Bill 748, which will maintain Michigan’s personal exemption for income tax and will raise the personal exemption amount by $600 gradually through 2021.
“I’m glad our state’s leadership was able to help Michigan families keep more of their hard-earned money,” said bill sponsor Sen. Jack Brandenburg, R-Harrison Township. “Just about everyone takes a personal exemption, so this type of tax relief will benefit almost all Michigan taxpayers.”
Michigan’s current state income tax law ties Michigan’s personal exemptions to the federal number of exemptions. Without a revision to the law, Michigan taxpayers no longer would have been able to claim the personal exemptions on their state taxes and would have owed an additional $1.5 billion statewide.
In addition to maintaining the state’s personal exemption, Brandenburg’s bill also increases the exemption amount by $600 to $4,900 by 2021, while remaining tied to inflation. Currently, the state personal tax exemption is only scheduled to increase from $4,000 to $4,300 over the next three years.
“Tax relief is something I’ve been working for since I came to Lansing fifteen years ago,” Brandenburg said. “I know how paralyzing high taxes can be to Michigan families trying to keep a balanced budget. Lower taxes give people the freedom to spend money on more of the things they need, or to save money for more of the things they want. It’s not just a platform issue; lower taxes means meaningful relief to Michigan families.”
“On a personal note, it was especially gratifying to see SB 748 voted out of the Senate Finance Committee, which I chair, and out of the Senate unanimously.”
Snyder held a press conference for the signing of the bill.