A bill to amend 1964 PA 284, entitled “City income tax act,” by amending sections 2a, 3, 3a, 3b, and 3c of chapter 1 and sections 11, 13, 15, 16, and 51 of chapter 2 (MCL 141.502a, 141.503, 141.503a, 141.503b, 141.503c, 141.611, 141.613, 141.615, 141.616, and 141.651), section 2a of chapter 1 as added by 1995 PA 234, section 3 of chapter 1 as amended by 2012 PA 394, section 3a of chapter 1 as amended and section 3b of chapter 1 as added by 1987 PA 223, section 3c of chapter 1 as amended by 2011 PA 56, section 11 of chapter 2 as amended by 1995 PA 233, section 13 of chapter 2 as amended by 1988 PA 216, and section 51 of chapter 2 as amended by 2018 PA 456.
This bill restricts cities from imposing an excise tax on nonresident individuals' income and outlines conditions under which cities can levy, assess, and collect excise taxes on corporations, resident individuals, and nonresident individuals until December 31, 2023. It sets tax rates based on city population and other factors, with provisions for revenue allocation towards a lighting authority's budget and city police departments for officer hiring or retention. The bill allows cities to adopt or rescind a uniform city income tax ordinance, providing local governance flexibility in tax policy, and mandates that any tax rate increase requires voter approval in certain cities and the appointment of a financial management consultant approved by the local emergency financial assistance loan board.
Co-sponsored by Reps.
Referred to the Committee on Tax Policy
