Michigan House Bill HB5633

Michigan 2023-2024 Regular Session

• Introduced: 4/9/24
• Refer: 4/9/24

Caption

Individual income tax: reporting; annual revenue report to individual income tax filers; require. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 471a.

Impact

The implementation of HB 5633 is intended to improve transparency in the state's income tax system by ensuring that taxpayers receive clear and concise information about how their tax contributions are being utilized. The report will enhance taxpayer awareness regarding the flow of revenue within the state, potentially fostering greater public engagement and understanding of governmental finances. By presenting such information in a straightforward manner, the bill aims to build trust between the state government and its constituents.

Summary

House Bill 5633 amends the Income Tax Act of 1967, specifically adding Section 471a, which mandates the creation of an annual revenue report to be distributed by mail to individual income tax filers starting in the 2024 tax year. This report will provide taxpayers with essential information regarding the revenue collection and distribution of individual income tax for the previous fiscal year. This includes details on total revenues from various sources such as wage withholdings, quarterly payments, flow-through taxes, and annual payments, as well as the total amount of refunds issued and allocations to state funds.

Contention

While the bill primarily seeks to enhance transparency, it may face some contention regarding the efficacy of producing and mailing out these reports. Critics may argue that the additional administrative costs associated with preparing and distributing these reports could outweigh the benefits of increased transparency. Furthermore, there may be debates about whether the information provided is sufficiently comprehensive or useful for taxpayers, questioning if it adequately addresses the diverse needs and understanding of the populace.