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Bill > HB4170
MI HB4170
MI HB4170Individual 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).
summary
Introduced
03/05/2025
03/05/2025
In Committee
03/20/2025
03/20/2025
Crossed Over
03/18/2025
03/18/2025
Passed
Dead
Introduced Session
103rd Legislature
Bill Summary
A bill to amend 1967 PA 281, entitled"Income tax act of 1967,"by amending section 51 (MCL 206.51), as amended by 2023 PA 4.
AI Summary
This bill modifies Michigan's individual income tax rates and provisions, establishing a complex schedule of tax rate changes from 2023 to 2026. Specifically, the income tax rate will decrease to 4.05% on January 1, 2023, then increase back to 4.25% on January 1, 2024, before potentially reducing again to 4.05% on January 1, 2025. The bill introduces a unique "triggering mechanism" for future rate reductions that depends on state revenue growth: if general fund/general purpose revenue increases more than the inflation rate in a given year, the tax rate will be automatically reduced. The calculation for this reduction is based on a complex formula involving current revenue, historical revenue, and inflation. The bill also adjusts how income tax revenues are allocated to the state school aid fund, specifying different percentages for various time periods from 2024 to 2026. Additionally, the bill clarifies definitions related to revenue calculations, including terms like "Consumer Price Index" and "total general fund/general purpose revenue," and makes technical language modifications to existing tax law provisions.
Committee Categories
Budget and Finance
Sponsors (24)
Kathy Schmaltz (R)*,
Timmy Beson (R),
Ken Borton (R),
Will Bruck (R),
Steve Carra (R),
Cam Cavitt (R),
Nancy DeBoer (R),
Jay DeBoyer (R),
Jim DeSana (R),
Parker Fairbairn (R),
Steve Frisbie (R),
Mike Hoadley (R),
Tom Kunse (R),
Rylee Linting (R),
Greg Markkanen (R),
Mike Mueller (R),
Joseph Pavlov (R),
David Prestin (R),
Angela Rigas (R),
J.R. Roth (R),
Alicia St. Germaine (R),
Jamie Thompson (R),
Curt VanderWall (R),
Doug Wozniak (R),
Last Action
Referred To Committee On Finance, Insurance, And Consumer Protection (on 03/20/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4170 |
| BillText | https://legislature.mi.gov/documents/2025-2026/billengrossed/House/htm/2025-HEBH-4170.htm |
| Fiscal Note/Analysis - House: Summary as Reported from Committee | https://legislature.mi.gov/documents/2025-2026/billanalysis/House/pdf/2025-HLA-4170-LBQTY28X.pdf |
| Fiscal Note/Analysis - House: Summary as Introduced | https://legislature.mi.gov/documents/2025-2026/billanalysis/House/pdf/2025-HLA-4170-5NQCYRXB.pdf |
| BillText | https://legislature.mi.gov/documents/2025-2026/billintroduced/House/htm/2025-HIB-4170.htm |
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