LANSING, Mich. — Sen. Dale Zorn on Wednesday voted for several tax relief measures, including legislation to preserve the personal exemption on the state income tax and provide additional tax relief for Michigan families.
“This $200 million tax relief plan is a well-earned break for Michigan families, who have worked hard to help improve our state and create jobs,” said Zorn, R-Ida. “As our state becomes more efficient and our economy continues to grow, the taxpayers deserve to be able to keep more of their hard-earned money.”
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 $700 to $5,000 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 supported this reform to stop an unnecessary tax hike on Michigan taxpayers and to provide them responsible and affordable tax relief,” said Zorn, who co-sponsored the bill. “During Senate consideration of the bill, I voted for an amendment to repeal the 2011 pension tax. Although it was not adopted in a close vote, I will continue efforts to repeal the pension tax in support of our seniors in their retirement.”
SB 748 included an amendment that will reimburse the School Aid Fund for revenue loss.
“Maintaining a high level of funding for our schools is an important part of this legislation as we continue to strengthen the education of our children, who are the next generation of Michigan workers,” Zorn said.
Zorn also voted on Wednesday to override the governor’s veto of SBs 94 and 95, which would speed up the state’s “sales tax on the difference” reform. Under the bills, the reform to limit Michigan sales and use taxes to only being applied to the difference between the price of a car and the value of a trade-in would be fully implemented in 2028 instead of 2039.
“I do not take overriding the governor lightly, but it was necessary to stand up for taxpayers,” Zorn said. “I supported taking the historic and bipartisan step to help Michigan consumers save millions of dollars in taxes and enable local auto dealers to better compete with dealers across the state line.”