Michigan House Bill HB4992

Michigan 2023-2024 Regular Session

• Introduced: 9/14/23
• Refer: 9/14/23
• Report Pass: 9/19/23
• Engrossed: 9/19/23
• Refer: 9/20/23

Caption

Cities: income tax; administration, enforcement, and collection procedures; modify. Amends secs. 6 & 9, ch. 1, secs. 3, 73, 84, 85, 86a, 86b, 86c, 91, 92 & 93, ch. 2 of 1964 PA 284 (MCL 141.506 et seq.) & adds sec. 92a to ch. 2.

Impact

If enacted, HB 4992 would significantly affect how city income taxes are administered in larger municipalities. The changes reflect an effort to streamline tax collection and administrative processes, thus potentially increasing the efficiency of revenue collection for cities which may struggle with compliance and enforcement under the existing framework. The provisions allowing faster tax lien enforcement may also deter tax delinquencies in these cities, offering a stronger mechanism to secure overdue payments from taxpayers.

Summary

House Bill 4992 aims to modify the administration, enforcement, and collection procedures related to city income taxes in Michigan. By amending various sections of the City Income Tax Act, the bill enhances the authority of municipalities with populations over 600,000 to collect taxes and manage related disputes more effectively. One primary focus is establishing clearer pathways for taxpayers to contest tax assessments and decisions through the formal appeals process, while also stipulating the conditions under which tax liens can be placed on properties to secure unpaid bills. This has implications for both city revenue generation and the management of taxpayer liabilities.

Sentiment

The sentiment around HB 4992 appears to be mixed among stakeholders. Supporters argue that the bill helps to create a more equitable and efficient tax collection system that protects city revenues and enables better management of public funds. Conversely, critics express concerns that the amendments may place undue pressure on taxpayers and limit their rights, by imposing stricter mechanisms for tax collection without sufficient protective measures for the taxpayers' ability to contest assessments. The discussions indicate an underlying conflict between enhancing city fiscal health and preserving taxpayer rights.

Contention

Notable points of contention regarding HB 4992 stem from the balance it seeks to strike between facilitating city tax collection and safeguarding taxpayer rights. Some lawmakers stress the need for clarity and speed in tax collection to enhance city incomes, while others raise alarms about potential overreach and fairness in the appeals process for taxpayers. This ongoing debate highlights the tension between local government fiscal necessities and the individual's rights against perceived government overreach in financial matters.