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MI HB4170
Bill
Status
3/18/2025
Primary Sponsor
Kathy Schmaltz
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AI Summary
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Permanently reduces Michigan's individual income tax rate to 4.05% effective January 1, 2025, down from 4.25%
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Establishes that any rate reduction triggered by the inflation-based formula becomes permanent for all subsequent tax years, rather than reverting back
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Modifies the automatic rate reduction trigger mechanism to begin January 1, 2026, which reduces the tax rate when general fund revenue growth exceeds inflation
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Maintains required deposits to the state school aid fund from income tax collections, with percentages ranging from 1.023% to 1.040% divided by the tax rate depending on the fiscal year
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Continues the $69,000,000 annual deposit to the Renew Michigan fund beginning with the 2022-2023 fiscal year, removing a previous contingency tied to minimum foundation allowance levels
Legislative Description
Individual income tax: rate; rollback of rate to 4.05% and effect of a triggering rate reduction; provide for, and clarify permanency. Amends sec. 51 of 1967 PA 281 (MCL 206.51).
Individual income tax: rate
Last Action
Referred To Committee On Finance, Insurance, And Consumer Protection
3/20/2025