HB 4605 Summary

• Maintains Michigan individual income tax rate at 4.25% for tax years beginning October 1, 2012 and thereafter.

• Directs income tax revenue collections to the state school aid fund based on a formula equal to 1.012% divided by the income tax rate (effective January 1, 2000).

• Establishes dedicated annual distributions to the transportation fund starting October 1, 2015: $442 million (2015-2016), $492 million (2016-2017), $617 million (2017-2018), and $792 million (2018-2019).

• Indexes transportation fund distributions to the U.S. consumer price index beginning October 1, 2019, with annual adjustments rounded up to the nearest $100 (floor is prior year amount).

• Requires the Department to annualize tax rates as necessary and establishes that taxable income for individuals shall be computed consistent with the Internal Revenue Code.