2012 Senate Bill 970 / Public Act 394

Allow higher Detroit city income tax

Introduced in the Senate

Feb. 15, 2012

Introduced by Sen. Bert Johnson (D-2)

To allow Detroit to impose an income tax of 3.0 percent on residents and 1.5 percent on nonresidents, which is 0.5 percent higher than currently allowed. Other cities are allowed to impose individual income taxes not higher than 1 percent for residents and 0.5 percent for non-residents.

Referred to the Committee on Finance

June 12, 2012

Referred to the Committee on Government Operations

June 13, 2012

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

June 14, 2012

Substitute offered

The substitute passed by voice vote

Amendment offered by Sen. Bert Johnson (D-2)

Consideration postponed

Sept. 12, 2012

Motion by Sen. Tupac Hunter (D-5)

That the Senate proceed to consideration of the bill.

The motion passed 37 to 1 (details)

Referred to the Committee on Government Operations

Dec. 4, 2012

Substitute offered

The substitute passed by voice vote

Passed in the Senate 20 to 18 (details)

To allow Detroit to suspend a state-mandated gradual reduction of its city income tax to the maximum rate allowed for other cities (1 percent for residents and 0.5 percent for non-residents). This would allow the current the city to keep its current rates of 2.4 percent and 1.2 percent, repectively, until debt incurred to fix broken streetlights is repaid (see House Bill 5688). When the mandated tax rate reduction was first enacted Detroit's income tax took 3 percent from residents and 1.5 percent from nonresidents who work in the city.

Motion by Sen. Arlan Meekhof (R-30)

That the bill be given immediate effect.

The motion passed by voice vote

Received in the House

Dec. 4, 2012

Referred to the Committee on Tax Policy

Dec. 13, 2012

Reported without amendment

Without amendment and with the recommendation that the bill pass.

Amendment offered by Rep. Richard LeBlanc (D-18)

To require more of Detroit's city income tax to be earmarked to police.

The amendment failed by voice vote

Passed in the House 59 to 50 (details)

To allow Detroit to suspend a state-mandated gradual reduction of its city income tax to the maximum rate allowed for other cities (1 percent for residents and 0.5 percent for non-residents). This would allow the current the city to keep its current rates of 2.4 percent and 1.2 percent, repectively, until debt incurred to fix broken streetlights is repaid (see House Bill 5688). When the mandated tax rate reduction was first enacted Detroit's income tax took 3 percent from residents and 1.5 percent from nonresidents who work in the city.

Received in the Senate

Dec. 13, 2012

Passed in the Senate by voice vote

Signed by Gov. Rick Snyder

Dec. 19, 2012