LANSING, Mich. (Michigan News Source)- Despite disagreements between members of Governor Gretchen Whitmer’s administration and the legislature, the state treasurer announced that the personal income tax cut is coming to the state.
Rachael Eubanks, the state treasurer, released the announcement a day after Democrat Attorney General Dana Nessel released an advisory opinion stating that the 2015 law would not be a permanent relief.
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“Simply put, the statue provides temporary relief based on temporary circumstances,” Nessel said.
The Department of Treasury declared in the announcement that the rate of the tax cut would last for one year and put $650 million back in people’s pockets.
“When Michiganders file their 2023 state income taxes in 2024, they will see the rate adjustment in the form of less tax owed or a larger refund,” Eubanks said.
The Department of Treasury confirmed what Republicans and members of the House Fiscal Agency have said the estimated state income tax rate will decrease to 4.05%; the state income tax cut would come from a 2015 amendment to the law that would automatically reduce the tax rate if the state budget surplus exceeded the rate of inflation.
An alternative that was suggested this year but ultimately did not pass, was to provide temporary relief to Michiganders through $180 checks to taxpayers, but joint filers would only be given $90 per filer.
House Minority Leader Matt Hall (R-Richland Township) disagreed with the Attorney General’s claims regarding the temporary nature of the income tax cut.
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“Michigan law states that the current tax rate will be reduced, and the language, history, and legislative intent of the law all make clear that the tax cut should be permanent. Playing word games with the law doesn’t change the law. Michigan taxpayers deserve lasting, real relief, not a temporary money mirage brought on by Democrats’ partisan tricks,” Hall said in a statement.
The state treasurer’s announcement also arrives after the release of the state’s fiscal year 2022 Annual Comprehensive Financial Report, a formal step of adopting a consensus among state agencies regarding revenue estimates.
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