LANSING, Mich. — Sen. Dale Zorn on Wednesday voted for legislation to preserve the personal exemption on state and local income taxes and provide additional tax relief for Michigan families.
“This 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 economy continues to grow and generate more state revenue, the taxpayers who make it all possible should to be able to keep more of their hard-earned money.”
The federal Tax Cuts and Jobs Act streamlined the exemption process and effectively ended 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 $600 to $4,900 by 2021.
SB 750 would ensure that the Michigan residents can continue claiming the personal exemption on their city income taxes.
“I supported this reform to stop an unnecessary tax hike on Michigan taxpayers and to provide them responsible and affordable tax relief,” Zorn said. “I voted for an amendment to reimburse the School Aid Fund for lost revenue. Although it was not adopted, I will continue to fight for our schools, and I look forward to approving a budget that substantially increases K-12 education funding for all Michigan schools.”