MI HB5337

Reduces Michigan individual income tax rate from 4.25% to 3.9% beginning January 1, 2021, and continuing through December 31, 2021.

Establishes automatic annual rate reductions of 0.1% each January 1 starting in 2022 until the income tax rate reaches zero.

Eliminates the previous automatic rate adjustment mechanism based on general fund revenue increases and inflation comparisons.

Removes definitions of "Consumer Price Index" and "Inflation rate" that were used in the prior automatic adjustment formula.

Maintains existing distributions to the state school aid fund, agricultural preservation fund, and renew Michigan fund based on income tax revenue collected.