MI HB5266

Amends Michigan's income tax rate schedule to reduce the personal income tax rate to 4.05% beginning January 1, 2016, down from the current 4.25% rate that began October 1, 2012.

Establishes a stepped reduction schedule with the rate declining to 4.15% on October 1, 2014, and then to 4.05% on January 1, 2016.

Maintains existing provisions regarding deposits of income tax revenues into the state school aid fund, with percentages calculated based on the applicable tax rate.

Applies the tax rate changes to taxable income of individuals, residents, nonresidents, partners, trust beneficiaries, and estates, excluding corporations.

Requires the department to annualize rates as necessary for tax years ending after April 30, 1994.