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MI SB0151

MI SB0151
Individual income tax: rate; rollback of rate to 3.9%; provide for. Amends sec. 51 of 1967 PA 281 (MCL 206.51).


summary

Introduced
03/13/2025
In Committee
03/13/2025
Crossed Over
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 amends Michigan's income tax law to gradually reduce the state's individual income tax rate, effectively rolling back the tax rate from 4.25% to 3.9% over several years. Specifically, the bill establishes a phased reduction in the income tax rate: on January 1, 2023, the rate will decrease to 4.05%, then return to 4.25% on January 1, 2024, and finally drop to 3.9% on January 1, 2025. The bill also modifies language related to state school aid fund distributions and makes some technical changes to definitions and terminology. The proposed changes affect individuals, partnerships, estates, and trusts subject to Michigan state income tax, removing previous complex provisions about revenue triggers for tax rate reductions. The bill aims to provide tax relief for individual taxpayers by lowering the overall income tax rate, which could potentially leave more money in taxpayers' pockets and make Michigan's tax environment more competitive.

Committee Categories

Budget and Finance

Sponsors (7)

Last Action

Referred To Committee On Finance, Insurance, And Consumer Protection (on 03/13/2025)

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