Michigan Senate Bill SB0950

Michigan 2023-2024 Regular Session

• Introduced: 6/26/24
• Refer: 6/26/24

Caption

Individual income tax: rate; repeal of the personal income tax; provide for. Amends title of 1967 PA 281 (MCL 206.1 - 206.847); adds sec. 799 & repeals pt. 1, ch. 17 & pt. 4 of 1967 PA 281 (MCL 206.1 - 206.532, 206.701 - 206.715 & 206.801 - 206.847).

Impact

The implications of SB 950 are profound, as it seeks to repeal parts of the existing income tax framework that have been in place since 1967. This change could effectively reshape how income tax is administered in Michigan, potentially affecting corporate taxation and state revenues. By eliminating certain provisions of the tax act, the state aims to address financial deficiencies while reforming the tax landscape, which could lead to both increased business compliance and shifts in state funding mechanisms.

Summary

Senate Bill 950 is legislation aimed at amending the Income Tax Act of 1967 (PA 281) in Michigan. The bill encompasses significant changes, including the repeal of certain sections of the act and the introduction of a new section that outlines the imposition and collection of taxes on net income and various commercial activities. Notably, this bill will take effect on January 1, 2025, which sets a firm timeline for the potential changes in the state's income tax structure.

Contention

During discussions about SB 950, various points of contention have emerged. Supporters of the bill argue that it will simplify tax processes and foster an environment conducive to business growth by eliminating outdated tax regulations. Conversely, opponents express concerns over potential revenue losses that could result from repealing the personal income tax and the impact this might have on funding essential state services. The debate highlights conflicting priorities between economic growth initiatives and the need for sustainable public funding.

Notable_points

A critical aspect of SB 950 is not only its focus on corporate income but also its repeal of previous tax responsibilities, signaling a major shift in fiscal policy. The introduction of section 799 emphasizes the need for clear guidelines regarding tax responsibilities moving forward. Given the tight timeline for implementation, stakeholders will need to prepare for the transition and assess its long-term effects on the state's financial health.