2024 House Bill 5399

AI Analysis – Experimental

The legislative text proposes amendments to the Income Tax Act of 1967, specifically modifying section 51 (MCL 206.51). The primary provision of the bill is the adjustment of income tax rates for individuals, excluding corporations. The tax rate is set to decrease from 4.25% to 4.05% for the period between January 1, 2023, and January 1, 2024, and further reduce to 3.9% starting January 1, 2024. Additionally, the bill outlines specific allocations of tax revenue to the state school aid fund, with varying percentages of gross collections before refunds being deposited into the fund from October 1, 2023, through September 30, 2026, and beyond. The bill also mandates that a portion of the revenue collected be allocated to the agricultural preservation fund and the renew Michigan fund, with specific conditions tied to the minimum foundation allowance for schools. The legislation removes previous provisions that tied tax rate reductions to increases in general fund/general purpose revenue exceeding the inflation rate. The bill also includes technical adjustments to ensure the taxable income of nonresidents and trust beneficiaries is computed consistently with federal tax regulations.