INCOME TAX: CHILD EXEMPTION - S.B. 1036: COMMITTEE SUMMARY
Senate Bill 1036 (as introduced 2-17-00)
Sponsor: Senator Bev Hammerstrom
Committee: Finance
Date Completed: 2-22-00
CONTENT
The bill would amend the Income Tax Act to increase and expand the extra exemption that a taxpayer may claim for child dependents.
Currently, a taxpayer may deduct from taxable income $600 for each child dependent younger than seven years old, and $300 for each child dependent at least seven but younger than 13 years old. This exemption is in addition to the standard dependency exemption allowed under the Act.
The bill provides that for tax years beginning after 1999, a taxpayer could deduct from taxable income $600 for each child dependent who was younger than 19 on the last day of the tax year.
MCL 206.30d - Legislative Analyst: G. Towne
FISCAL IMPACT
The bill would reduce income tax revenue an estimated $20.3 million in FY 1999-2000 and $26.5 million in FY 2000-01. This loss in revenue would affect General Fund/General Purpose revenue.
- Fiscal Analyst: J. WortleyS9900\s1036sa
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.