HOUSE BILL No. 4982
June 26, 1997, Introduced by Reps. Wallace, Dobronski, Brewer, Thomas, Griffin, Profit, Bogardus, Kilpatrick, LaForge, Rison, Hale, Price, Hanley, Parks, Varga, Murphy, Hood, Mathieu, Emerson, Scott, Curtis and Olshove and referred to the Committee on Tax Policy. A bill to amend 1967 PA 281, entitled "Income tax act of 1967," by amending section 257 (MCL 206.257), as amended by 1987 PA 254. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 257. (1) For city income taxes becoming due and pay- 2 able for periods ending after December 31, 1967, each person 3 subject to the tax levied by section 51 shall be IMPOSED BY 4 THIS ACT IS allowed a credit computed by the table set out in 5 this section PURSUANT TO SUBSECTION (4) for city income taxes 6 deductible in the person's tax year for federal income tax pur- 7 poses pursuant to section 164 of the internal revenue code, or 8 which THAT would have been deductible in his or her tax year if 9 he or she had not elected the standard deduction. If the amount 10 of city income taxes used as a basis for the credit computation 02932'97 * RJA 2 1 differs from the city income tax liability incurred and paid by 2 the taxpayer for the tax year, the credit for the ensuing year 3 shall be adjusted by the amount of the difference between the 4 city income taxes used as a basis for the credit computation and 5 the city income taxes incurred and paid by the taxpayer for the 6 tax year. City AS USED IN THIS SECTION, "CITY income taxes" 7 means the taxes levied under the city income tax act, Act 8 No. 284 of the Public Acts of 1964, as amended, being sections 9 141.501 to 141.787 of the Michigan Compiled Laws 1964 PA 284, 10 MCL 141.501 TO 141.787, and, for purposes of this section, does 11 not include penalties or interest. A credit shall not be 12 allowed for city income taxes, other than estimated payments, 13 which are delinquent on January 1, 1968. 14 (2) For a return of less than 12 months, the credit shall be 15 reduced proportionately. 16 (3) The credit allowed by section 260 and this section shall 17 not be in excess of the tax liability of the taxpayer. 18 (4) (2) The credit shall be computed as follows: 19 20 If the total city income tax is: The credit shall be: 21 $100.00 or less 20% of the city income taxes 22 Over $100.00 but not over $150.00 $20.00 plus 10% of the 23 excess over $100.00 24 Over $150.00 $25.00 plus 5% of the excess 25 over $150.00, but the 26 total credit shall not 27 exceed $10.000.00. 28 29 (A) FOR TAX YEARS BEFORE THE 1997 TAX YEAR, THE FOLLOWING 30 APPLY: 31 (i) IF THE TOTAL CITY INCOME TAX IS $100.00 OR LESS, THE 32 CREDIT IS 20% OF THE CITY INCOME TAX. 02932'97 * 3 1 (ii) IF THE TOTAL CITY INCOME TAX IS MORE THAN $100.00 BUT 2 $150.00 OR LESS, THE CREDIT IS $20.00 PLUS 10% OF THE CITY INCOME 3 TAX IN EXCESS OF $100.00. 4 (iii) IF THE TOTAL CITY INCOME TAX IS MORE THAN $150.00, THE 5 CREDIT IS $25.00 PLUS 5% OF THE CITY INCOME TAX IN EXCESS OF 6 $150.00 BUT THE TOTAL CREDIT SHALL NOT EXCEED $10,000.00. 7 (B) FOR TAX YEARS AFTER THE 1996 TAX YEAR, THE FOLLOWING 8 APPLY: 9 (i) IF THE TOTAL CITY INCOME TAX IS $300.00 OR LESS, THE 10 CREDIT IS 20% OF THE CITY INCOME TAX. 11 (ii) IF THE TOTAL CITY INCOME TAX IS MORE THAN $300.00 BUT 12 $450.00 OR LESS, THE CREDIT IS $60.00 PLUS 10% OF THE CITY INCOME 13 TAX IN EXCESS OF $300.00. 14 (iii) IF THE TOTAL CITY INCOME TAX IS MORE THAN $450.00, THE 15 CREDIT IS $75.00 PLUS 5% OF THE CITY INCOME TAX IN EXCESS OF 16 $450.00 BUT THE TOTAL CREDIT SHALL NOT EXCEED $10,000.00. 02932'97 * Final page. RJA