2011 House Bill 4623 / Public Act 56

Let Detroit keep imposing higher income tax

Introduced in the House

May 10, 2011

Introduced by Rep. David Nathan (D-11)

To allow Detroit to continue to uniquely impose an income tax of 2.5 percent on residents and 1.25 percent on nonresidents. Other cities are allowed to impose individual income taxes at 1 percent for residents and 0.5 percent for non-residents; this is one of many laws that provides unique privileges or powers for "a city with a population greater than 750,000." The bill would lower that to 600,000 to accommodate Detroit's ongoing population decline.

Referred to the Committee on Tax Policy

May 25, 2011

Reported without amendment

With the recommendation that the substitute (H-2) be adopted and that the bill then pass.

May 26, 2011

Substitute offered

To replace the previous version of the bill with one that revises details but does not change the substance as previously described.

The substitute passed by voice vote

June 1, 2011

Passed in the House 56 to 53 (details)

Received in the Senate

June 7, 2011

Passed in the Senate 21 to 17 (details)

To allow Detroit to continue to uniquely impose an income tax of 2.5 percent on residents and 1.25 percent on nonresidents. Other cities are allowed to impose individual income taxes at 1 percent for residents and 0.5 percent for non-residents; this is one of many laws that provides unique privileges or powers for "a city with a population greater than 750,000." The bill would lower that to 600,000 to accommodate Detroit's ongoing population decline.

Signed by Gov. Rick Snyder

June 9, 2011