State Rep. Steve Johnson has introduced legislation that would repeal Michigan’s unused estate tax provision.

Prior to 2002, Michigan’s estate tax was a pickup tax that piggybacked on the federal estate tax due to the availability of a federal credit for estate taxes paid at the state level. As a result, Michigan and 37 other states set their estate taxes equal to the federal credit. However, when the credit was repealed in 2001, all 38 states with pickup taxes saw their archaic estate tax provisions fall by the wayside.

“Too often, laws that are either not in use or have been effectively repealed are left on the books,” said Johnson. “Responsible government makes sure our laws are as simple and easy-to-understand as possible.”

Johnson’s legislation has no fiscal impact since both the federal government and Michigan have both ceased to collect the estate tax.

“This is simply good government in action,” said Johnson.

House Bill 4922 remains in the House Tax Policy Committee for further consideration.

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