State wants to improve income tax laws

Aug 16, 2013

LANSING, MI (AP)--   The state Treasury Department is considering ways to better align city and state income tax laws. 

Department spokesman Terry Stanton tells The Detroit News that the agency is considering provisions to assist in the collection of city income tax from those who live in a city such as Detroit but work outside the city.

The state in 2012 offered to help Detroit collect millions of dollars in unpaid income taxes from residents who work in the suburbs, but that hasn't happened.

Legislation would be needed to require suburban employers to withhold the taxes for Detroit residents.

Stanton says no legislation has been introduced.

The issue affects other municipalities with income taxes. The newspaper says they also struggle to get suburban employers to withhold taxes.