Brandenburg’s tax exemption restoration bill passes Senate

By: Julie Snyder | Mount Clemens - Clinton - Harrison Journal | Published January 23, 2018

LANSING — The Michigan Senate on Jan. 17 passed a bill sponsored by Sen. Jack Brandenburg, R-Harrison Township, that would restore the Michigan personal tax exemption lost in the recent federal tax reform.

 According to a press announcement released by the senator’s office, without Senate Bill 748, Michigan families face a tax hike of nearly $1.5 billion.

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, the press release states. 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,” Brandenburg said in the press release. “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.”

Brandenburg serves the state’s 8th Senate District, which includes Mount Clemens; St. Clair Shores; Grosse Pointe Shores; Harrison, Shelby, Chesterfield, Washington, Bruce, Ray and Lenox townships; as well as New Haven and Romeo.

According to the Senate Fiscal Agency, SB 748 would 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 said in a statement. “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, the release states.

SB 748 now goes to the Michigan House for consideration.