An expected drop in the state income tax rate would be temporary. That’s according to a formal opinion released today by Michigan Attorney General Dana Nessel.
A boost in state tax collections combined with federal COVID relief assistance is expected to add up to a revenue windfall that’s far enough beyond the rate of inflation. That would trigger an income tax rate rollback under a 2015 state law. State Treasurer Rachel Eubanks asked for a formal legal opinion on the duration of a tax cut if that happens. The attorney general’s ruling: A *one-time* windfall means a *one-time* tax cut before the state income tax rate returns to 4.25%.
Nessel said -quote- “the statute provides temporary relief based on temporary circumstances.” Republicans and anti-tax groups are crying “foul.” A legal challenge appears likely.
