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Below is a snapshot of key features of Michigan's tax system. (Scroll Down)
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State & Local Revenue (FY08)
- General Revenue, Own-Source (GROS): $58.2 billion
- General Revenue as a Share of Income: 16.7%
- Tax Revenue: $37.6 billion
- Tax Revenue as Share of income: 10.8%
- Personal Income Tax (Share of Tax Revenue): 20.3% (36 out of 51)
- Corporate Income Tax (Share of Tax Revenue): 4.7% (13 out of 51)
- Sales & Excise Tax (Share of Tax Revenue): 32.4% (29 out of 51)
- Property Tax (Share of Tax Revenue): 37.5% (7 out of 51)
- Other Taxes (Share of Tax Revenue): 2.7% (33 out of 51)
Personal Income Tax Features (2011)
- Range of Tax Rates: 4.35%
- Standard Deduction: None
- Personal Exemption: $3,700
- Dependent Exemption: $3,700
- Earned Income Tax Credit (EITC): 20% Refundable
- Flat income tax rate structure
- Significant income tax changes scheduled to take effect in 2012.
Corporate Income Tax Features (2011)
- Range of Tax Rates: 4.95%
- Income Level at Which Top Rate Applies: All
- Combined Reporting: Yes
- Apportionment Factor (Payroll): 0%
- Apportionment Factor (Property): 0%
- Apportionment Factor (Sales): 100%
- The Michigan Business Tax will be replaced with a true, 6% corporate income tax starting in 2012.
Sales Tax Features (2011)
- State Sales Tax Rate: 6.00%
- Average Local Sales Tax Rate: N/A
- Average Combined State & Local Sales Tax Rate: 6.00%
- State Sales Tax Treatment of Groceries: Exempt
- Local Sales Tax Treatment of Groceries: N/A
- Number of Services Taxed: 26 out of 168 surveyed
- Streamlined Sales Tax Membership: Full
- Vendor Compensation available with high ceiling
- State sales tax applies to gasoline
Property Tax Features (2011)
- Provides a circuit breaker for homeowners and renters of all ages
- Taxable value increases capped at lesser of 5% or inflation.
Other Tax & Revenue Features (2011)
- Gasoline Tax Rate (per gallon): $0.437
- Diesel Tax Rate (per gallon): $0.404
- Cigarette Tax Rate (per pack): $2.00
- Estate or Inheritance Tax: No
- Net Lottery Sales Per Capita: $201
Tax Policy Oversight
- Tax Expenditure Report: Yes
- Tax Incidence Analysis Capability: Personal income tax only
Last Updated August 25, 2011
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