Livingston Today

State Representative Ann Bollin has taken steps to deliver tax relief for Michigan families and small businesses by voting in favor of House Bill 4170. The bill aims to lower the state income tax rate to 4.05% starting January 1, 2025, which would allow taxpayers in Michigan to retain over $700 million annually.

“Michigan families are feeling the squeeze of rising costs — whether it’s groceries, gas, housing, or childcare, their budgets are stretched to the limit,” stated Bollin. “This money belongs in the wallets of those we represent — not in the government coffers. Our plan restores the income tax cut that was wrongly taken away and provides permanent relief for hardworking families.”

The bill also seeks to uphold a 2015 law designed to trigger automatic income tax reductions when state revenues exceed inflation levels. This measure is intended to prevent future administrations from reversing permanent tax relief measures as was done by the Whitmer administration in 2024.

In 2023, an automatic reduction had decreased the rate from 4.25% to 4.05%, aligning with the original intent of the law’s creators such as former Governor Rick Snyder and other legislative leaders at that time. Despite this, Governor Whitmer's administration along with Attorney General Dana Nessel ruled this cut temporary, resulting in a reversion back to a 4.25% rate on January 1, 2024.

House Bill 4170 proposes not only reversing this increase but also ensuring that future reductions remain unless explicitly changed by legislation.

As chair of the House Appropriations Committee, Bollin emphasized that Michigan’s financial standing can support this reduced tax rate given recent budget forecasts indicating higher-than-expected revenue collections.

“Instead of looking for new ways to spend every penny that comes into the state coffers, I am focused on giving money back to the people who earned it,” said Bollin. “Government should not be padding its budget while families are struggling to make ends meet."

The bill now moves forward for consideration by the Senate.