January 16, 2018, Introduced by Reps. Noble, Hauck and Tedder and referred to the Committee on Tax Policy.
A bill to amend 1964 PA 284, entitled
"City income tax act,"
by amending sections 31 and 44 of chapter 2 (MCL 141.631 and
141.644), section 31 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
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).
Sec. 44. Where total income, total deductions, net profits, or
other figures are derived from the taxpayer's federal income tax
return, any item of income not subject to the city income tax and
unallowable deductions shall be eliminated in determining net
income subject to the city tax. The fact that a taxpayer is not
required to file a federal income tax return does not relieve him
or her from filing a city tax return.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 99th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 5422 (request no.
04390'17).
(b) Senate Bill No.____ or House Bill No. 5420 (request no.
05182'17 *).