MI HB4952

Beginning January 1, 2019, cities are prohibited from imposing an excise tax on income of nonresident individuals.

Through December 31, 2018, nonresident individuals remain subject to city income tax at rates not exceeding 50% of the resident rate (or specific maximums: 1.20% under Section 3(2)(d) and 1.10% under Section 3(2)(e)).

Sections 13, 15, and 51 of Chapter 2 are amended to apply only "through December 31, 2018" for taxation of nonresident individuals, effectively ending nonresident taxation after that date.

Cities with populations over 600,000 may levy up to 2.4% on resident individuals and 1.2% on nonresident individuals (through December 31, 2018), with rates for other city sizes specified in Sections 3a, 3b, and 3c.

Employer withholding requirements for nonresident compensation are limited to situations where estimated work performed in the city exceeds 25% of total employment, and only through December 31, 2018.