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2015 Senate Bill 414: Road funding package - potential income tax reduction

Public Act 180 of 2015

Introduced by Sen. Wayne Schmidt (R) on June 18, 2015 To reduce the state income tax from 4.25 percent to 4.20 percent as of Oct. 1, 2015. This describes the bill as introduced, before this provision was replace by those described in the Senate-passed version.   Official Text and Analysis.
Referred to the Senate Finance Committee on June 18, 2015
Reported in the Senate on July 1, 2015 With the recommendation that the substitute (S-1) be adopted and that the bill then pass.
Passed 27 to 11 in the Senate on July 1, 2015.
    See Who Voted "Yes" and Who Voted "No".
To earmark $350 million from state income tax collections to road funding in the next fiscal year, and $700 million in subsequent years. The bill would also place in statute a scheme to potentially roll back future income tax rates if the amount of revenue deposited into the general fund in a given year grew faster than inflation.
Note that the legislature controls the level of these deposits, and can reduce them by redirecting revenue elsewhere, or depositing money into the state rainy day fund. So even if overall state tax collections do increase more than inflation, income tax rate reductions would essentially be at the discretion of each legislature, as under current law..
Received in the House on July 14, 2015
Referred to the House Roads and Economic Development Committee on July 14, 2015
Substitute offered by Rep. Jeff Farrington (R) on October 21, 2015
The substitute passed by voice vote in the House on October 21, 2015
Amendment offered by Rep. Jeff Irwin (D) on October 21, 2015
The amendment failed by voice vote in the House on October 21, 2015
Amendment offered by Rep. Bill LaVoy (D) on October 21, 2015
The amendment failed by voice vote in the House on October 21, 2015
Passed 61 to 45 in the House on October 21, 2015.
    See Who Voted "Yes" and Who Voted "No".
To potentially roll back future income tax rates if the amount of revenue deposited into the state "general fund" in a given year grows faster than inflation, starting in 2019. Note that the legislature controls the level of these deposits, and can reduce them by redirecting revenue elsewhere, or depositing money into the state rainy day fund. Therefore, any future income tax rate reductions would essentially be at the discretion of each legislature, as under current law.
Received in the Senate on November 3, 2015
Substitute offered by Sen. Wayne Schmidt (R) on November 3, 2015 To adopt a version of the bill that moves back any potential income tax cut until 2023, and requires even higher growth in state tax collections before this could happen.
The substitute passed by voice vote in the Senate on November 3, 2015
Passed 28 to 10 in the Senate on November 3, 2015.
    See Who Voted "Yes" and Who Voted "No".
To potentially roll back future income tax rates if the amount of revenue deposited into the state "general fund" in a given year grows at least 1.425 times faster than inflation - but not until 2023. Note that the legislature ultimately controls these deposits, and how much is deposited into the state rainy day fund. Therefore, any future income tax rate reductions would essentially be at the discretion of each legislature, as under current law.
Received in the House on November 3, 2015
Amendment offered by Rep. Bill LaVoy (D) on November 3, 2015 To also require "the outstanding debt of this state" to go down before permitting income tax rates to be reduced.
The amendment failed by voice vote in the House on November 3, 2015
Amendment offered by Rep. Jim Townsend (D) on November 3, 2015 To tie-bar the bill to House Joint Resolution K, meaning this bill cannot become law unless that proposed constitutional amendment is placed on the ballot by a two-third vote in the House and Senate. HJR K would repeal an existing prohibition on imposing a graduated state income tax.
The amendment failed by voice vote in the House on November 3, 2015
Passed 61 to 46 in the House on November 3, 2015.
    See Who Voted "Yes" and Who Voted "No".
To concur with the Senate-passed version of the bill, which moves back any potential income tax cut until 2023, and requires even higher growth in state tax collections before this could happen.
Signed by Gov. Rick Snyder on November 10, 2015

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