A bill to amend 1967 PA 281, entitled “Income tax act of 1967,” by amending section 51 (MCL 206.51), as amended by 2020 PA 75.
House Bill No. 4037 aims to amend the Income Tax Act of 1967, specifically section 51, to reduce individual income tax rates (excluding corporations) from 4.35% in 2007 to 3.9% by January 1, 2026. Starting January 1, 2027, if the increase in total general fund/general purpose revenue exceeds the inflation rate (defined by the annual percentage change in the Consumer Price Index for all urban consumers) and the inflation rate is positive, further tax rate reductions will be implemented. This adjustment is based on a formula involving the difference between the total general fund/general purpose revenue and the capped general fund/general purpose revenue. The state treasurer and the directors of the senate and house fiscal agencies will determine the applicability of these reductions using the comprehensive annual financial report.
Introduced
by
Referred to the Committee on Tax Policy
