LANSING, Mich. — The Michigan Senate on Wednesday passed a bill sponsored by Sen. Jack Brandenburg that would restore the Michigan personal tax exemption lost in the recent federal tax reform.
Without Senate Bill 748, Michigan families face a tax hike of nearly $1.5 billion.
Sen. Brandenburg’s legislation maintains the state’s personal exemption and also increases the exemption amount by $700 to $5,000 by 2021, while remaining tied to inflation. Currently, the state personal tax exemption is scheduled to increase from $4,000 to $4,300 over the next three years.
“This would be about a $210 million cut to a colossal state budget that’s over $55 billion,” said Brandenburg, R-Harrison Township. “We really haven’t had any meaningful state tax relief for average, working-class people in 20 years. This is great progress and it’s been long overdue.”
According to the Senate Fiscal Agency, SB 748 will result in a $210 million tax cut, or just 0.38 percent of the total budget.
“I’m proud that this legislation received unanimous bipartisan support,” Brandenburg added. “It’s a common-sense fix for a serious problem, and it puts money back into the pockets of hardworking Michigan families.”
Michigan’s current state income tax law ties Michigan personal exemptions to the federal number of exemptions. Without a revision to the law, Michigan taxpayers would no longer be able to claim the personal exemptions on their state taxes.
SB 748 will now go to the Michigan House for consideration. Brandenburg urged his colleagues in the House to pass the bill quickly so Michigan families can file confidently and with the knowledge that they are keeping even more of their hard earned money.