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Mackinac Center for Public Policy
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2011 House Bill 4623: Let Detroit keep imposing higher income tax

Public Act 56 of 2011

  1. Introduced by Rep. David Nathan (D) on May 10, 2011, to allow Detroit to continue to uniquely impose an income tax of 2.5 percent on residents and 1.25 percent on nonresidents. Other cities are allowed to impose individual income taxes at 1 percent for residents and 0.5 percent for non-residents; this is one of many laws that provides unique privileges or powers for "a city with a population greater than 750,000." The bill would lower that to 600,000 to accommodate Detroit's ongoing population decline.
    • Referred to the House Tax Policy Committee on May 10, 2011.
      • Reported in the House on May 25, 2011, with the recommendation that the substitute (H-2) be adopted and that the bill then pass.
    • Substitute offered in the House on May 26, 2011, to replace the previous version of the bill with one that revises details but does not change the substance as previously described. The substitute passed by voice vote in the House on May 26, 2011.
  2. Passed 56 to 53 in the House on June 1, 2011.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on June 7, 2011.
  4. Passed 21 to 17 in the Senate on June 7, 2011, to allow Detroit to continue to uniquely impose an income tax of 2.5 percent on residents and 1.25 percent on nonresidents. Other cities are allowed to impose individual income taxes at 1 percent for residents and 0.5 percent for non-residents; this is one of many laws that provides unique privileges or powers for "a city with a population greater than 750,000." The bill would lower that to 600,000 to accommodate Detroit's ongoing population decline.
    Who Voted "Yes" and Who Voted "No"

  5. Signed by Gov. Rick Snyder on June 9, 2011.

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