LANSING, Mich. -- Michigan Attorney General Dana Nessel says a potential rollback of the state income tax should last no longer than one year.
She gave that opinion Tuesday, days before an automatic rollback in the income tax drops it from 4.25 percent to 4.05 percent for the 2023 tax year. If Nessel's opinion is upheld, the rate would return to 4.25% for the 2024 tax year.
The Income Tax Act was amended in 2015 to trigger an automatic reduction in the income tax rate when an increase in the general fund exceeds the inflation rate. Or, as Nessel said in her opinion:
"In 2015, the Income Tax Act was amended to provide a mechanism by which the income tax rate would be reduced in circumstances where a percentage increase in the general fund/general purpose revenue for the preceding fiscal year exceeded the inflation rate for that same period and the inflation rate was positive."
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