State Rep. Ann Bollin today voted to provide critical tax relief to Michigan families and small businesses.

House Bill 4170 will lower the state income tax rate to 4.05% as of Jan. 1, 2025, ensuring that Michigan taxpayers keep more than $700 million of their hard-earned income each year.

“Michigan families are feeling the squeeze of rising costs — whether it’s groceries, gas, housing, or childcare, their budgets are stretched to the limit,” said Bollin, R-Brighton Township. “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.”

HB 4170 also reinforces a 2015 law intended to trigger automatic income tax reductions when state revenues exceed inflation, preventing future administrations from undermining permanent tax relief as the Whitmer administration did in 2024.

In 2023, an automatic tax reduction lowered the rate from 4.25% to 4.05%, following the intent of the 2015 law. This should have been permanent, according to the law’s architects, including former Gov. Rick Snyder, former House Speaker Kevin Cotter, and former Senate Majority Leader Arlan Meekhof. The nonpartisan House Fiscal Agency also observed at the time that the reduction would be permanent.

However, the Whitmer administration and Attorney General Dana Nessel declared the cut was temporary, resulting in the tax rate jumping back to 4.25% on Jan. 1, 2024, and raising taxes on every Michigan taxpayer.

In addition to reversing this tax hike, HB 4170 will guarantee that future tax reductions remain intact unless the Legislature explicitly changes them.

Bollin, who serves as chair of the House Appropriations Committee, highlighted that Michigan’s budget can more than accommodate the lower tax rate. Over the past two years, state budget forecasts have consistently reported higher-than-expected revenue.

In January, state budget experts projected that Michigan would collect $850 million more in revenue than previously anticipated — more than enough to cover the proposed tax cut.

“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,” Bollin said. “Government should not be padding its budget while families are struggling to make ends meet. This plan will provide meaningful relief and put money back where it belongs — in the pockets of Michigan taxpayers.”

House Bill 4170 now advances to the Senate for further consideration.

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