SB-0750, As Passed House, February 14, 2018

SB-0750, As Passed Senate, January 23, 2018

SUBSTITUTE FOR

SENATE BILL NO. 750

     A bill to amend 1964 PA 284, entitled

"City income tax act,"

by amending section 31 of chapter 2 (MCL 141.631), as amended by

1988 PA 120.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

CHAPTER 2

     Sec. 31. (1) An individual taxpayer in computing his or her

taxable income is allowed deductions for the full personal and

dependency exemptions authorized by the federal internal revenue

code part 1 of the income tax act of 1967, 1967 PA 281, MCL 206.1

to 206.532 or, on the passage of a further ordinance, a deduction

of a minimum of $600.00 for each personal and dependency exemption

under the rules for determining exemptions and dependents as

provided in the federal internal revenue code. part 1 of the income

tax act of 1967, 1967 PA 281, MCL 206.1 to 206.532. The taxpayer

may claim his or her spouse and dependents as exemptions, but if

the taxpayer and the spouse are both subject to the tax imposed by

this ordinance, the number of exemptions claimed by each of them

when added together shall not exceed the total number of exemptions

allowed under this ordinance.

     (2) For tax years beginning after 1986, an An additional

exemption is allowed under subsection (1), upon passage of a

further ordinance, for a taxpayer who is 65 years of age or older,

or who is blind as defined in section 504 of the income tax act of

1967, Act No. 281 of the Public Acts of 1967, being section 206.504

of the Michigan Compiled Laws, 1967 PA 281, MCL 206.504, or if the

taxpayer is both 65 years of age or older and blind, 2 additional

exemptions are allowed under subsection (1). For tax years

beginning after 1987, upon Upon passage of a further ordinance, an

additional exemption is allowed under subsection (1) for a taxpayer

who is a paraplegic, quadriplegic, hemiplegic, or totally and

permanently disabled person as disability is defined in section 216

of title II of the social security act, 42 U.S.C. USC 416, or a

taxpayer who is a deaf person as defined in section 2 of the deaf

persons' interpreters act, Act No. 204 of the Public Acts of 1982,

being section 393.502 of the Michigan Compiled Laws. 1982 PA 204,

MCL 393.502. If the taxpayer qualifies for an additional exemption

under more than 1 of the following, an additional exemption is

allowed for each of the following for which the taxpayer qualifies:

     (a) A taxpayer who is a paraplegic, quadriplegic, or

hemiplegic, or who is a totally or permanently disabled person as

Senate Bill No. 750 as amended February 14, 2018

disability is defined in section 216 of title II of the social

security act, 42 U.S.C. USC 416.

     (b) A taxpayer who is blind as defined in section 504 of the

income tax act of 1967, Act No. 281 of the Public Acts of 1967,

being section 206.504 of the Michigan Compiled Laws.1967 PA 281,

MCL 206.504.

     (c) A taxpayer who is a deaf person as defined in section 2 of

the deaf persons' interpreters act, Act No. 204 of the Public Acts

of 1982, being section 393.502 of the Michigan Compiled Laws.1982

PA 204, MCL 393.502.

     (d) A taxpayer who is 65 years of age or older.

     (3) For tax years beginning after 1986 and upon Upon passage

of a further ordinance, a city, as determined by its governing

body, may provide for either an exemption from the tax levied under

this act if that person's adjusted gross income for that tax year

is less than a certain amount to be as specified by the ordinance,

or an exemption in an amount to be specified by the ordinance, for

a person with respect to whom a deduction under section 151 of the

internal revenue code part 1 of the income tax act of 1967, 1967 PA

281, MCL 206.1 to 206.532 is allowable to another federal taxpayer

during the tax year and is therefore not considered to have a

federal personal exemption under subsection (1).

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