House Bill 4374 (Substitute H-1)

House Bill 4985 (Substitute H-1)

Sponsor: Rep. John Freeman

Committee: Tax Policy

Complete to 6-2-98

A SUMMARY OF HOUSE BILLS 4374 AND 4985 (SUBSTITUTES H-1)

The bills would amend the Income Tax Act to increase the personal exemption. House Bill 4985 would add $400 for the 2000 tax year and an additional $300 for the 2001 tax year to the personal exemption. House Bill 4374 would add an additional $300 in each of the years 2002, 2003, and 2004. The two bills are tie-barred to one another.

(The personal exemption provisions are currently structured so that the personal exemption for tax years after 1997 is $2,500 adjusted annually for inflation and rounded to the nearest $100, plus another $200 after the inflation adjustment. The proposed additions in the two bills would also appear to be added after the annual inflation adjustment.)

MCL 206. 30 and 206.51b

Analyst: C. Couch

This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.