H.B. 704 implements Article VII, Sec. 21 of the new constitution which provides that cities and villages may levy taxes other than property taxes subject to constitutional and statutory limitations and prohibitions. H.B. 704 authorizes cities to impose a local income tax in accordance with a uniform city income tax ordinance provided in the bill and prohibits villages from levying local income taxes.

The bill provides that no city or village may impose a local income tax prior to January 1, 1965, except that those cities that had a city income tax in effect on January 1, 1964, (Detroit, Hamtramck, and Flint) may continue to levy the tax until January 1, 1965. On and after January 1, 1965, any city which wishes to impose a city income tax on a local option basis may do so only by adopting in its entirety the “Uniform City Income Tax Ordinance” provided in Sec. 6 of the bill.


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