2003 House Bill 4658 ↩

House Roll Call 488: Passed

To allow Detroit to raise its income tax from the current 2.5 percent to 2.6 percent for residents and 1.3 percent for commuters, then reduce it gradually to 2.0 percent and 1.0 percent, respectively, between 2005 and 2010. Detroit is required by current state statute to cut its income tax rate, as part of a 1998 deal to continue to give the city $333.9 million in revenue sharing for 10 years, notwithstanding cuts to other local governments. The state cut all revenue sharing by 3.5 percent this year and Gov. Jennifer Granholm has proposed another three percent cut for next year. Postponing the Detroit tax cut would cost taxpayers some $74 million through 2010, assuming that many do not leave the city altogether.