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2003 Senate Bill 852: Postpone income tax cut

Public Act 239 of 2003

  1. Introduced in the Senate on December 2, 2003, to postpone the Jan. 1, 2004 one-tenth percent income tax cut for as long as the balance in the Budget Stabilization Fund (BSF, or "rainy day fund") remains below $250 million. The bill would leave the tax at 4.0 percent, rather than cutting it to 3.9 percent on Jan. 1, 2004 as is required under current statute.
    • Referred to the Senate Finance Committee on December 2, 2003.
      • Referred to the Senate Government Operations and Reform Committee on December 9, 2003.
        • Reported in the Senate on December 10, 2003, with the recommendation that the substitute (S-3) be adopted and that the bill then pass.
    • Substitute offered in the Senate on December 10, 2003, to replace the previous version of the bill with one which increases from 3.9 percent to 4.00 percent the state income tax rate for the period Jan. 1, 2004 until July 1, 2004. After July 1, the rate will drop to 3.9 percent. Under current law, the rate would drop from 4.0 percent to 3.9 percent on Jan. 1, 2004. The subsitutute also tie-bars the bill to Senate Bill 672 and 673, which eliminate 40 percent of the Single Business Tax businesses pay on their employee health insurance costs. Those bills must therefore become law in order for this one to become law. The substitute passed by voice vote in the Senate on December 10, 2003.
  2. Passed 24 to 14 in the Senate on December 10, 2003, to increase from 3.9 percent to 4.00 percent the state income tax rate for the period Jan. 1, 2004 until July 1, 2004. After July 1, the rate will drop to 3.9 percent. Under current law, the rate is 3.9 percent beginning Jan. 1, 2004. The bill is tie-barred to Senate Bills 672 and 673, which eliminate 40 percent of the Single Business Tax businesses pay on their employee health insurance costs. See also House Bill 4367 and Senate Bill 556.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the House on December 10, 2003.
    • Referred to the House Tax Policy Committee on December 10, 2003.
  4. Failed 45 to 61 in the House on December 16, 2003, to increase from 3.9 percent to 4.00 percent the state income tax rate for the period Jan. 1, 2004 until July 1, 2004. After July 1, the rate will drop to 3.9 percent. Under current law, the rate is 3.9 percent beginning Jan. 1, 2004. The bill is tie-barred to Senate Bills 672 and 673, which eliminate 40 percent of the Single Business Tax businesses pay on their employee health insurance costs. See also House Bill 4367 and Senate Bill 556.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the House on December 18, 2003.
  6. Passed 64 to 46 in the House on December 18, 2003, to increase from 3.9 percent to 4.00 percent the state income tax rate for the period Jan. 1, 2004 until July 1, 2004. After July 1, the rate will drop to 3.9 percent. Under current law, the rate is 3.9 percent beginning Jan. 1, 2004. The bill is tie-barred to Senate Bills 672 and 673, which eliminate half of the Single Business Tax businesses pay on their employee health insurance costs. See also House Bill 4367 and Senate Bill 556.
    Who Voted "Yes" and Who Voted "No"

  7. Signed by Gov. Jennifer Granholm on December 23, 2003.

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