As Michigan Economy Recovers, State Collects More Taxes

Increases in sales and income taxes boost state revenue

The sales tax is 6 percent in Michigan.

The state of Michigan has increased its collection of taxes in the first three years of Gov. Rick Snyder’s tenure, reversing a two-year decline in the final two years of former Gov. Jennifer Granholm.

Tax revenue increased from $21.81 billion in 2010 Snyder’s first year in office to $24.43 billion in 2013, the most recent year available. The vast majority of the increase can be attributed to the economic recovery the state has gone through. Michigan’s personal income tax collections have increased from $5.53 billion in 2010 to $8.27 billion in 2013 and the sales tax jumped from $6.17 billion in 2010 to $7.05 billion in 2013.

“The economic recovery is real and it is allowing the state of Michigan to receive more revenue on the same tax rates,” said James Hohman, assistant director of fiscal policy for the Mackinac Center for Public Policy.

The $24.43 billion in state taxes in 2013 includes all the taxes the state collects, including property taxes used for state education, income tax, casino gaming wagering and taxes on beer, wine and liquor and tobacco products. The two largest sources of tax revenue for the state in 2013 were the personal income tax ($8.27 billion) and sales tax ($7.05 billion).

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See also:

Michigan Should Lower the Personal Income Tax Rate in 2015

State Budget Has Increased Almost $5 Billion the Past Three Years

Despite Claims, Tax Cuts Have not 'Overwhelmed' Michigan

The Best Plan for Michigan Tax Reform


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