MI HB5265

Amends Section 51 of the Income Tax Act of 1967 to modify individual income tax rates for Michigan residents and nonresidents.

Establishes a new tax rate of 4.15% effective October 1, 2014, reducing from the previous rate of 4.25% that was in effect from October 1, 2012 through September 30, 2014.

Maintains existing provisions for computing taxable income of nonresidents, trust beneficiaries, and individuals with trust income consistent with federal tax code definitions.

Preserves the requirement to deposit a specified percentage of net revenues collected under the income tax into the state school aid fund, calculated based on the applicable tax rate.

Applies annualized tax rates as necessary for tax years that end after April 30, 1994, with the applicable annualized rate imposed on taxable income of individuals other than corporations.