1035: FLOOR ANALYSIS - INCOME TAX RATE

INCOME TAX RATE - S.B. 1035: FLOOR ANALYSIS

Senate Bill 1035 (as reported without amendment)

Sponsor: Senator Mike Rogers

Committee: Finance

CONTENT

The bill would amend the Income Tax Act to reduce the income tax rate by .1% in calendar year 2000, by providing that the State income tax rate would be 4.2% from January 1, 2000, to January 1, 2002. The bill would repeal a provision that sets the income tax rate at 4.3% in 2000.

Currently, the Act provides that the income tax rate is 4.3% in 2000, and will be 4.2% in 2001; 4.1% in 2002; 4.0% in 2003; and 3.9% in 2004 and thereafter.

MCL 206.51c - Legislative Analyst: G. Towne

FISCAL IMPACT

The bill would reduce income tax revenue an estimated $134.7 million in FY 1999-2000 and $46.9 million in FY 2000-01. All of this tax reduction would affect General Fund/General Purpose revenue.

Date Completed: 3-1-00 - Fiscal Analyst: J. WortleyFloor\sb1035 - Bill Analysis @ http://www.state.mi.us/sfa

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.