To increase the income cap (“household resources” cap) at which the value of a property tax credit a homeowner or renter can claim against his or her state income tax begins to phase-out, from $41,000 to $51,000. The bill would also make more gradual the extent to which each $1,000 in additional income above this amount diminishes the credit. In other words, the bill would reduce the “cliff” effect of a <a href="http://www.michiganvotes.org/2011-HB-4361"> tax reform and business tax cut law </a> that placed new income limits on this credit.
Referred to the Committee on Finance
Reported without amendment
With the recommendation that the substitute (S1) be adopted and that the bill then pass.
Passed in the Senate 37 to 1
To increase the maximum income cap (“household resources” cap) on a property tax credit a homeowner or renter may claim against his or her state income tax begins to phase-out, from $50,000 to $70,000. The vote is part of a deal made with Democrats by Gov. Rick Snyder and Senate Majority Leader Randy Richardville to get their votes on a $1.2 billion fuel tax increase, and will only go into effect if that tax hike is enacted.
Referred to the Committee on Tax Policy