Public Act 394 of 2012

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• Introduced by Sen. Bert Johnson (D) on February 15, 2012, to allow Detroit to impose an income tax of 3.0 percent on residents and 1.5 percent on nonresidents, which is 0.5 percent higher than currently allowed. Other cities are allowed to impose individual income taxes not higher than 1 percent for residents and 0.5 percent for non-residents.
  • Referred to the Senate Finance Committee on February 15, 2012.
  • Referred to the Senate Government Operations Committee on June 12, 2012.
    • Reported in the Senate on June 13, 2012, with the recommendation that the substitute (S-1) be adopted and that the bill then pass.
  • Substitute offered in the Senate on June 14, 2012. The substitute passed by voice vote in the Senate on June 14, 2012.
  • Amendment offered by Sen. Bert Johnson (D) on June 14, 2012.
  • Motion by Sen. Tupac Hunter (D) on September 12, 2012, that the Senate proceed to consideration of the bill. The motion passed 37 to 1 in the Senate on September 12, 2012.
    Who Voted "Yes" and Who Voted "No"
  • Referred to the Senate Government Operations Committee on September 12, 2012.
  • Substitute offered in the Senate on December 4, 2012. The substitute passed by voice vote in the Senate on December 4, 2012.
• Passed 20 to 18 in the Senate on December 4, 2012, to allow Detroit to suspend a state-mandated gradual reduction of its city income tax to the maximum rate allowed for other cities (1 percent for residents and 0.5 percent for non-residents). This would allow the current the city to keep its current rates of 2.4 percent and 1.2 percent, repectively, until debt incurred to fix broken streetlights is repaid (see House Bill 5688). When the mandated tax rate reduction was first enacted Detroit's income tax took 3 percent from residents and 1.5 percent from nonresidents who work in the city.
  Who Voted "Yes" and Who Voted "No"
• Motion by Sen. Arlan Meekhof (R) on December 4, 2012, that the bill be given immediate effect. The motion passed by voice vote in the Senate on December 4, 2012.
• Received in the House on December 4, 2012.
  • Referred to the House Tax Policy Committee on December 4, 2012.
    • Reported in the House on December 13, 2012, without amendment and with the recommendation that the bill pass.
  • Amendment offered by Rep. Richard LeBlanc (D) on December 13, 2012, to require more of Detroit's city income tax to be earmarked to police. The amendment failed by voice vote in the House on December 13, 2012.
• Passed 59 to 50 in the House on December 13, 2012, to allow Detroit to suspend a state-mandated gradual reduction of its city income tax to the maximum rate allowed for other cities (1 percent for residents and 0.5 percent for non-residents). This would allow the current the city to keep its current rates of 2.4 percent and 1.2 percent, repectively, until debt incurred to fix broken streetlights is repaid (see House Bill 5688). When the mandated tax rate reduction was first enacted Detroit's income tax took 3 percent from residents and 1.5 percent from nonresidents who work in the city.
  Who Voted "Yes" and Who Voted "No"
• Received in the Senate on December 13, 2012.
• Passed by voice vote in the Senate on December 13, 2012.
• Signed by Gov. Rick Snyder on December 19, 2012.