MI HB5421

Replaces references to the federal Internal Revenue Code with references to Part 1 of the Michigan Income Tax Act of 1967 for determining personal and dependency exemptions under the City Income Tax Act.

Allows individual taxpayers a minimum deduction of $600 per personal and dependency exemption upon passage of a further city ordinance, if federal exemptions are reduced to zero.

Removes time-period restrictions ("For tax years beginning after 1986" and "For tax years beginning after 1987") from provisions allowing additional exemptions for seniors (age 65+), blind individuals, disabled persons, and deaf persons.

Permits cities to provide exemptions from city income tax based on adjusted gross income thresholds or for dependents claimed by other taxpayers, as specified by city ordinance.

Contains a tie-bar provision making the bill effective only if both HB 5420 and HB 5422 from the 99th Legislature are enacted into law.