MI SB0584

Converts the mandatory tax withholding requirement for pension and annuity administrators into an optional provision, allowing but not requiring them to withhold Michigan income tax from disbursements.

Removes withholding requirements for flow-through entities (partnerships, S corporations) on business income distributions to nonresident members and corporate members, eliminating sections 3-5 and 16-19 of the current law.

Maintains mandatory withholding requirements for employers on employee compensation, casino licensees on nonresident winnings, race track licensees on nonresident pari-mutuel payoffs, and eligible production companies.

Preserves the exemption from withholding for qualified charitable gift annuities issued by 501(c)(3) organizations.

Takes effect January 1, 2026.