Michigan Supreme Court to Make Final Decision on Income Tax Lawsuit

May 14, 2024 Last Edit: June 5, 2025

Michigan Supreme Court to Make Final Decision on Income Tax Lawsuit

After losing at the Court of Claims and the Appeals Court, NFIB is making one last appeal to the Michigan Supreme Court in order to maintain the 2023 income tax cut. Last year, NFIB, along with the Mackinac Center for Public Policy and several others filed suit against the Michigan Department of Treasury’s decision to raise the personal income tax rate back to 4.25% in 2024. The rate was lowered to 4.05% for the 2023 tax year thanks to a 2015 law that created a tax cut trigger. The trigger automatically lowers taxes when state revenue outpaces inflation by a set amount. The Whitmer administration and Attorney General Nessel claimed that the tax cut was not meant to be permanent, despite protestations from legislators who were involved in the 2015 legislation. The Governor’s refusal to accept the permanency of the tax cut as resulted in a $714 million dollar tax increase for Michigan citizens and small business owners who pay business taxes through the personal income tax. The final appeal was filed with the Michigan Supreme Court on Tuesday, May 13, 2024. NFIB will continue to keep you updated as we await an answer from the Court.

Topics:

Taxes

State:

Michigan