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MI HB4862

MI HB4862
Cities: income tax; taxing income of nonresidents; prohibit. Amends secs. 2a, 3, 3a, 3b & 3c, ch. 1 & secs. 11, 13, 15, 16 & 51, ch. 2 of 1964 PA 284 (MCL 141.502a et seq.).


summary

Introduced
06/28/2023
In Committee
06/28/2023
Crossed Over
Passed
Dead
12/31/2024

Introduced Session

102nd Legislature

Bill Summary

A bill to amend 1964 PA 284, entitled"City income tax act,"by amending sections 2a, 3, 3a, 3b, and 3c of chapter 1 and sections 11, 13, 15, 16, and 51 of chapter 2 (MCL 141.502a, 141.503, 141.503a, 141.503b, 141.503c, 141.611, 141.613, 141.615, 141.616, and 141.651), section 2a of chapter 1 as added by 1995 PA 234, section 3 of chapter 1 as amended by 2012 PA 394, section 3a of chapter 1 as amended and section 3b of chapter 1 as added by 1987 PA 223, section 3c of chapter 1 as amended by 2011 PA 56, section 11 of chapter 2 as amended by 1995 PA 233, section 13 of chapter 2 as amended by 1988 PA 216, and section 51 of chapter 2 as amended by 2018 PA 456.

AI Summary

This bill amends the City Income Tax Act by prohibiting cities from imposing an income tax on nonresidents starting January 1, 2024. The bill also makes changes to the tax rates that cities can impose on residents and nonresidents through December 31, 2023, including limiting the rate on nonresidents to 50% of the rate on residents. Additionally, the bill requires cities to have a financial management consultant monitor their fiscal condition if they want to increase their income tax rates. The bill applies to cities that currently have an income tax or receive voter approval to implement one.

Committee Categories

Budget and Finance

Sponsors (15)

Last Action

Bill Electronically Reproduced 06/28/2023 (on 07/18/2023)

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