House Bill 5561

Sponsor: Rep. Derrick Hale

Committee: Tax Policy

Complete to 9-13-00

A SUMMARY OF HOUSE BILL 5561 AS INTRODUCED 4-11-00

The bill would amend the Income Tax Act to allow a qualified taxpayer a deduction for any income received as reparations for the institution of slavery from the federal government or from any other state or governmental entity. (A deduction would lower a taxpayer's taxable income for the purpose of calculating tax liability.) The bill would apply to tax years beginning after December 31, 1999. A qualified taxpayer would be an individual who:

1) was born in the state, had a birth certificate stating he or she is of African-American descent, and had resided in the state for the 10 years immediately preceding the tax year in which the deduction was first claimed; or

2) had resided in the state for the 10 years immediately preceding the first year in which the deduction was first claimed and could prove that he or she is of African-American descent.

MCL 206.30

Analyst: C. Couch

This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.