Michigan accelerates personal income tax rate cut and revamps personal exemption amounts

On June 26, 2012, Governor Rick Snyder signed legislation that accelerates the date Michigan's personal income rate decreases to 4.25% from 4.35% to October 1, 2012. Previously, that rate cut was scheduled to take effect on January 1, 2013. The governor also signed a bill that allows personal income taxpayers to claim qualifying annual personal or dependency exemption amounts equal to $3,950 effective October 1, 2012 ($4,000 effective January 1, 2014) or the amount previously allowed ($3,700 for 2012, adjusted for inflation in subsequent years), whichever is greater. The legislation requires the Michigan Department of Treasury to annualize the $3,950 amount mentioned above for the 2012 tax year, rounded to the nearest $1. L. 2012, H5699, effective 06/26/2012 ; L. 2012, H5700, effective 06/26/2012