Mar 29, 2023 - Politics

Expected tax cut could only last 1 year

Samuel Robinson

Michigan Attorney General Dana Nessel speaks in East Lansing last year. Photo: Bill Pugliano/Getty Images

The anticipated reduction to the state income tax rate as outlined under a law passed by Republicans in 2015 would last only one year, according to a formal opinion published by Attorney General Dana Nessel Tuesday.

Driving the news: Michigan's income tax rate would return to its current rate of 4.25% even after a future reduction, despite the law mandating an automatic rate cut if government revenue grows faster than the rate of inflation, Nessel wrote in the opinion.

She wrote that the law is temporary.

Between the lines: Republicans want income tax to be cut to 4.05%.

Democrats have pushed back against the policy, most recently while negotiating their tax package earlier this year.

What's next: State courts could have the final say in how the law is interpreted and if you're paying more in taxes.

Add Axios on Google

Expected tax cut could only last 1 year

More Detroit stories