Michigan High Court Told it Should Skip Inflation Income Tax Cut

An appeals court correctly held that an inflation-based income tax cut was temporary as indicated by the plain language of the law, the state treasurer told the Michigan Supreme Court.

Michigan’s intermediate-level court of appeals in March found that the state’s 4.05% income tax rate of 2023 was always intended to revert back to the 4.25% rate that was in effect at the time the disputed legislation was amended.

MCL 206.51(1) mandates that if state revenue outpaces inflation by a set amount, the income tax rate will be reduced. The plain and unambiguous language of that statute dictates that a ...