MI HB4481

Establishes a graduated income tax rate structure beginning January 1, 2021, with rates of 4.0% on the first $5,000 (single) or $10,000 (joint), 4.25% on income between those thresholds and $75,000 (single) or $150,000 (joint), and 8.4% on all income above those amounts.

Maintains the current flat income tax rate of 4.25% through December 31, 2020, with provisions to revert to the previous rate if the minimum foundation allowance falls below 2017-2018 levels during fiscal years 2018-2019 through 2019-2020.

Requires annual inflation adjustments to the income tax brackets starting in 2022 using the Midwest Employment Cost Index for the east north central division, rounded to the nearest $100 increment.

Allocates 22.74% of net income tax collections to the state school aid fund beginning January 1, 2021, and continues to deposit $69,000,000 annually into the Renew Michigan fund, subject to minimum foundation allowance protections.

Takes effect only upon approval of Senate Joint Resolution G or House Joint Resolution 00492'19 to amend the Michigan Constitution.