LANSING, Mich — A Democratic tax bill has cleared the Michigan Senate and is on its way to the Governor's desk.
If signed into law, the tax bill would phase out Michigan's retirement tax and increase the earned-income tax credit.
Last week, House Bill 4001 passed the House and was sent to the Senate, where the session was quickly adjourned by Republicans while Democrats were in caucus, a maneuver allowed when no majority party leadership is on the floor.
On Thursday, House Bill 4001 passed the Senate 20-17 along party lines.
However, the bill did not receive enough votes to take immediate effect, which would have required some Republicans to vote "yes." This throws the future of the proposed $180 rebate checks into limbo.
Many Republicans point to a 2015 trigger law as their reason to vote down House Bill 4001.
Immediate effect of the bill means the money proposed for the rebate checks would not enter the state's general fund and trigger a 2015 law, which lowers Michigan's income tax rate from 4.25% to 4.05% should the general fund reach a certain cap.
However, Democrats are still weighing their options. They could potentially alter Senate rules, changing the number of votes needed to pass a bill with immediate effect.
The Senate adjourned until next Tuesday, with House Bill 4001 passed but not primed for immediate effect.
In a statement, however, Governor Gretchen Whitmer applauded the passage of the bill, while also saying she hopes Republicans and Democrats can work together to make the rebate checks happen.
“Today, the Michigan Senate passed the largest tax break for seniors and working families in decades," said Governor Whitmer. "Michiganders have been fighting to roll back the retirement tax and boost the Working Families Tax Credit for years, and today, we got it done."
READ:Democratic tax bill stalled after Senate Republicans abruptly adjourn
