Michigan taxpayers will see their 2012 personal income tax rate decrease from 4.35 percent to 4.25 percent under legislation approved today by the House.
House Bill 5699, sponsored by Rep. Ed McBroom, is part of a two-bill package that provides immediate tax relief for individuals by reducing the income tax rate.
“This tax cut is an investment back into the people of the state of Michigan,” said McBroom, R-Vulcan. “I’m pleased that responsible reforms have allowed us to reinvest in education, public safety and infrastructure, and we are able to give back to the taxpayers after their sharing in the sacrifice and patience during tough times.”
McBroom said this is the first time in 13 years Michigan’s personal income tax rate has been reduced.
“By accelerating the income tax rate rollback, we are putting nearly $100 million back into the pockets of Michigan’s hard-working taxpayers and into our economy,” McBroom said. “I remain committed to ensuring that through continued government fiscal responsibility and efficiency we will continue the savings for all Michigan residents. It is remarkable that after just one year of responsible budgeting we are in a position to reinvest in so many valuable programs and I look forward to what will happen after several years of these practices.”
The second bill in the package also approved today, HB 5670, lowers people’s tax bill by increasing the allowable personal tax exemption from $3,700 per person to $3,950 per person. It will then increase to $4,000 per person in 2014, and to $4,100 in 2017.
Both bills become effective Oct. 1, 2012 if signed into law by the governor.
HBs 5669 and 5670 now head to the Senate for consideration