MI HB4462

Amends the City Income Tax Act to modify refund interest provisions: establishes that interest on valid refund claims for tax year 2017 and later accrues without a 45-day waiting period, while earlier tax years (1992-2016) retain the existing 45-day waiting period before interest begins.

Allows cities to enter into written agreements with qualified employers for 2016-2020 tax years to advance-pay city income taxes at the nonresident rate for all employees; agreements can last up to 25 years and include reconciliation provisions.

Updates terminology from "husband and wife" to "married couple" in section 41 and makes conforming changes to statutory references throughout the act.

Modifies withholding requirements: employers subject to advance payment agreements under the new provisions are exempt from regular withholding obligations for covered employees, and employees for whom advance payments are made must still file returns and pay any remaining resident tax liability.

Repeals the prior section 43a effective December 31, 2016, and adds new section 50 establishing the framework for advance payment agreements between cities and qualified employers.