Tax Reform Moves

Liz Gullett

Feb 16, 2018

This week the legislature approved of a package of bills providing an increase to the personal income tax exemption. The legislation incrementally increases the state personal tax exemption from the current $4,000 to $4,900 by 2021. In addition, the bills will allow tax payers to continue to claim the exemption on city income taxes. Due to federal tax reform, without state action, Michigan residents would no longer be able to claim the exemption on their taxes. The legislation will be sent to Governor Rick Snyder for consideration.

“The legislative agreement comes after the House, Senate, and administration were at a stale mate on the amount of the credit. Originally, the House proposed an exemption of $4,800, the Senate $5,000, and the governor proposed $4,500, said Matt Sowash of MLC. The final agreement was part of the negotiations on reforming driver responsibility fees (see previous post).

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