A few weeks ago, I posted a blog about how residents in renaissance zones (and businesses without signed agreements) will not have to pay taxes under the legislation creating the new Corporate Income Tax. That legislation amended the Income Tax for the state and removed most tax credits, including the credit for residents living in Renaissance Zones . Click here for the blog.

 

This week, Sen. Dave Hildenbrand introduced SB 748 (co-sponsored by Sen. Hansen).  This bill will reinstate the credit/exemption from taxes for residents in renaissance zones that were there before this new legisaltion amending the Income Tax became law.  This will ensure that the promise is upheld to residents that they will be tax-free in renaissance zones while that area is designated as a renaissance zone.

Several communities have complained that the removal of the credit broke the tax-free promise from the state when the Renaissance Zone law was passed.  This broken promise punishes people who took a chance and moved to problem areas in cities.  This bill rectifies that problem.

The League thanks Sen. Hildenbrand and Sen. Hansen, and will work closely with them to see that this bill becomes law.

Andy Schor is the Assistant Director of State Affairs for the Michigan Municipal League. Contact him at (517) 908-0300 or by email at aschor@mml.org.

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