Michigan Votes

2007 House Bill 5105 (Repeal Detroit income tax reduction law )

Public Act 209 of 2007

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  • Introduced by Rep. Steve Tobocman on August 8, 2007, to repeal a law that requires Detroit to gradually reduce its city income tax to 2.0 percent for residents and 1.0 percent for non-residents who work in the city. The law lets Detroit postpone annual one-tenth of a percent reductions if certain conditions apply, which has been the case since 2004, but will not apply this year. Under the bill Detroit’s income tax would remain at 2.5 percent for residents and 1.25 percent for non-residents who work in the city.
    • Referred to the House Tax Policy Committee on August 8, 2007.
      • Reported in the House on September 5, 2007, without amendment and with the recommendation that the bill pass.
    • Amendment offered by Rep. Phil Pavlov on September 25, 2007, to only allow cities to levy an income tax if they do not pass or enforce an ordinance or regulation that prohibits local officials and peace officers from cooperating with federal immigration authorities in matters "concerning the immigration status" of a resident alien. Although the amendment passed, its provisions were not included in the Gaffney substitute that was subsequently adopted, and so is not in the House-passed version of the bill. The amendment passed in the House by voice vote on September 25, 2007.
    • Substitute offered by Rep. Edward Gaffney on September 25, 2007, to replace the previous version of the bill with one that repeals the requirement that Detroit must lower its city income tax, and allows the city to impose a 3 percent rax on residents, and 1.5 percent on nonresidents who work there. The substitute passed in the House (70 to 39) on September 25, 2007. [Vote Details and Comments]
  • Passed in the House (73 to 35) on October 3, 2007, to repeal a law that requires Detroit to gradually reduce its city income tax to 2.0 percent for residents and 1.0 percent for non-residents who work in the city. The law lets Detroit postpone annual one-tenth of a percent reductions if certain conditions apply, which has been the case since 2004, but will not apply this year. Under the bill Detroit may levy an income tax allowed of 3 percent rax on residents, and 1.5 percent on nonresidents who work there. [Vote Details and Comments]
  • Received in the Senate on October 9, 2007.
    • Referred to the Senate Finance Committee on October 9, 2007.
    • Substitute offered in the Senate on December 13, 2007, to replace the previous version of the bill with one that does not freeze Detroit's income tax rate at 2.5 percent, but does suspend for two years the mandated gradual reductions in the rate. The substitute passed in the Senate by voice vote on December 13, 2007.
  • Passed in the Senate (32 to 4) on December 13, 2007, to suspend for two years a law that requires Detroit to gradually reduce its city income tax to 2.0 percent for residents and 1.0 percent for non-residents who work in the city. [Vote Details and Comments]
  • Received in the House on December 13, 2007, to concur with the Senate-passed version of the bill. Passed in the House (65 to 42) on December 13, 2007. [Vote Details and Comments]
  • Signed by Gov. Jennifer Granholm on December 27, 2007.

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Comments

Introduced by Rep. Steve Tobocman on August 8, 2007. Passed in the House (73 to 35) on October 3, 2007. New Comment

1) Thanks, Detroit [by Anonymous Citizen on March 14, 2008]
Just because I get a job in your city limits doesn't mean you should have any right to any money I make. You're just going to throw it away on the endless roadwork that makes the roads unusable.
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2) Is this prudent? [by jmd364 on September 7, 2007]
Are we going to allow this special consideration to all of the other Michigan cities that impose an income tax? What makes the City of Detroit the special case?

Why do we keep rewarding failed policies with special considerations? Maybe the Mayor should spend less time in barber shops!




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3) why is a city imposing [by Anonymous Citizen on September 7, 2007]
an income tax in the first place?

is this CONSTITUTIONAL?

is this LEGAL?

why don't ALL michigan cities impose an income tax? probably because detroit got a VARIANCE FROM THE LAW THAT PREVENTS OTHER CITIES FROM IMPOSING AN ILLEGAL INCOME TAX.

why does our state legislature bend over backwards to allow government entities to take the taxpayer's money?


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4) Kill the goose [by Anonymous Citizen on August 15, 2007]
They should raise the tax to 5% and they just kill the city of Detroit completely.
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5) Excellent Idea [by Anonymous Citizen on March 14, 2008]
make it 25% and then we can start over after the dust has settled.
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6) No big deal [by Anonymous Citizen on August 14, 2007]
They said they would reduce taxes. They lied. End of story.

Will people ever wake up?
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7) So they lied... [by Anonymous Citizen on August 15, 2007]
...and this is news why?


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