Kathleen Gray

Detroit Free Press Lansing Bureau

LANSING -- Michigan and Mississippi have something in common — a man and a woman living together without being married is technically a crime.

The law, which hasn't been enforced in decades, still carries a misdemeanor penalty of up to one year in jail and a $1,000 fine. But under a bill that passed unanimously in the Senate Judiciary Committee Tuesday, that language would be wiped off the books.

It's not just that the law is archaic and isn't enforced anymore, said bill sponsor Sen. Steve Bieda, D-Warren. It also carries tax implications. A person can't claim a dependent exemption for a household if the relationship is deemed "illegal" by local or state law.

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"This actually has a negative impact on taxpayers in the state," Bieda said. "I’d like to see Michigan beat Mississippi on this."

Gregory Nowak, a partner and tax law attorney with Miller Canfield law firm in Detroit, said he's done tax returns in which the impact of the cohabitation law has been real and costly.

"We must obey the letter of the Internal Revenue Code, and that prohibits a dependent exemption that otherwise could be included," he said. "Those individuals are deprived of claiming the dependent exemption that’s allowed in 48 other states."

The bill — SB 896 — now moves to the full Senate for consideration.

Contact Kathleen Gray: 313-223-4430, kgray99@freepress.com or on Twitter @michpoligal.