MI HB4089

Beginning January 1, 2020, cities are prohibited from imposing an excise tax on income of nonresident individuals.

Through December 31, 2019, cities may continue to tax nonresidents at rates up to 50% of the resident individual tax rate under existing provisions.

Amends sections 11, 13, 15, 16, and 51 of the uniform city income tax ordinance to limit nonresident taxation provisions to apply only through December 31, 2019.

Cities with populations over 600,000 may levy taxes up to 2% on corporations and 2.4% on residents before the nonresident tax prohibition takes effect.

Maintains existing authority for cities that had income taxes in effect on January 1, 1995, or obtain voter approval to impose taxes on residents and corporations.