A long-sought measure by Detroit Mayor Mike Duggan’s administration will let suburban employers voluntarily register to withhold Detroit’s city income tax for employees who live in the city.
With more than half of Detroiters reverse-commuting to the suburbs each day, city officials have been lobbying the Legislature for years to mandate that suburban withhold and remit the 2.4 percent Detroit city income tax. But the bill has died in the past two legislative sessions.
This compromise legislation doesn’t let Detroiters opt-out of the city income tax withholding if their employer voluntarily collect the tax. City officials hope the measure will improve tax-paying compliance.