Michigan HB4170 rolls back the individual income tax rate to 4.05% and clarifies the conditions for future rate reductions.

Michigan HB4170 amends the individual income tax rates, setting the rate at 4.05% from October 1, 2024, and onward. It specifies that if the total general fund/general purpose revenue increases more than the inflation rate for a given period, the tax rate will reduce. The bill also details the percentages of gross collections to be deposited into the state school aid fund for specific periods. It includes definitions for terms such as "capped general fund/general purpose revenue," "current rate," and "total general fund/general purpose revenue.

Michigan HB4170 rolls back the individual income tax rate to 4.05% and clarifies the conditions for future rate reductions.

Michigan HB4170 amends the individual income tax rates, setting the rate at 4.05% from October 1, 2024, and onward. It specifies that if the total general fund/general purpose revenue increases more than the inflation rate for a given period, the tax rate will reduce. The bill also details the percentages of gross collections to be deposited into the state school aid fund for specific periods. It includes definitions for terms such as "capped general fund/general purpose revenue," "current rate," and "total general fund/general purpose revenue.