Friends,
In this email, you’ll find a number of important resources and updates. Also, we hope to see you at one of our upcoming coffee hours!
Detroit Eviction Defense Program
The City of Detroit Office of Eviction Defense is expected to start a program next month that offers free legal defense for tenants facing eviction. To qualify, tenants must be 200% below the federal poverty guidelines, making $29,160 or less in 2023, and seeking representation in the 36th District Court. In order to show proof of eligibility, be sure to provide proof of income.
Stay tuned for more information on how to access the program in the coming month.
Detroit Taxpayers Can Now Pay Tax Bills Electronically
The city of Detroit and the Department of Treasury announced that taxpayers now have the option to pay individual income taxes electronically as opposed to mailing a check. Payments available to pay online include annual return payments, proposed tax due payments, audit payments, assessment payments, 10-day demand payments, and estimated payments. This system does not include payments for property taxes.
To make a payment, visit www.michigan.gov/citytax and click on the “City of Detroit Individual Income Tax” button. Afterward, select “Sending Payments to Treasury,” review the available electronic payment options and then select “Make e-Payment.”
Lowering MI Costs Program
The Lowering MI Costs Plan will deliver the largest tax break to seniors and working families in decades by rolling back the retirement tax and quintupling the Working Families Tax Credit. In fact, 700,000 households will benefit from the working families tax credit expansion and 500,000 fewer households will have to pay the retirement tax. It will also deliver inflation relief checks to every taxpayer, with over four million households expecting relief at $180 for each person. Getting this done will help people pay the bills as inflation eats into their monthly budgets. Putting money back into the pockets of the people is a top priority for me and the Michigan Senate Democrats.
- Working Families Tax Credit
The plan quintuples the Michigan Working Families Tax Credit match of the federal Earned Income Tax Credit (EITC) to 30%, up from 6%. It will deliver an average combined tax refund of over $3,000 to 700,000 families, directly impacting nearly 1 million kids—almost half the kids in Michigan. Lowering MI Costs makes this boost retroactive for tax year 2022, meaning families will get more money in their pockets this year. By helping workers, parents, employers, business, kids, and the overall economy benefits. - Retirement Tax
The plan phases out the retirement tax over four years and will ultimately put an average of $1,000 back in the pockets of 500,000 households. The retirement tax lends to increase the vulnerability of our seniors. Phasing out this tax gives some more financial freedom and flexibility to seniors. Lowering MI Costs will also equalize the exemption on both public and private pensions. - Inflation Relief Checks
Many Michiganders can feel the stress of rising costs due to inflation. The plan will deliver $180 inflation relief checks to every Michigan tax filer, providing relief by putting money back in pockets.
Legislative Updates
This week, I was proud to vote for Senate Bill 12, which repeals the retention requirement of the Read by Grade 3 law. This law currently requires students to repeat grade three if they are a year or more behind in their reading, which negatively impacts students who are already having difficulties. By moving forward with SB 12, we can explore how to best support struggling students rather than holding them back a grade.
Last week I introduced three bills in the Michigan Senate:
- Senate Bill 55 would improve access to the Poverty Tax Exemption or the Property Owners Tax Assistance Program. My bill would extend the COVID-19 extension passed in 2020 for an additional year and allow for a one year “lookback” to allow exemptions to be granted. It will also allow more local governments to opt in to allowing the poverty exemption to “stick” for up to three years for those on a fixed income.
- I also introduced Senate Bill 56, which would repeal the antiquated prohibition on cohabitating. Right now, the law states that “Any man or woman, not being married to each other, who lewdly and lasciviously associates and cohabitates together…” is guilty of a misdemeanor. A local attorney and a local accountant pointed out this issue, which involves the disparity in tax treatment under the IRS policy which states that dependent exemptions may not be claimed if the relationship is illegal under state law. Leaving this unenforced prohibition on the books causes conflict between federal tax code and Michigan law, and Michigan is one of only three states that still has this type of law on its books.
- Senate Bill 57 would prohibit stores from selling paraphernalia used for consumption of nitrous oxide (“Whip-Its”) for recreational purposes. I collaborated with the Whippet Wipeout Coalition and local law enforcement to learn more about this issue. “Whip-Its” have become a popular drug of choice, with over 12 million users in the United States who have at least tried it once. The empty canisters are often tossed on the street, which creates a litter nuisance. But the effects of “Whip-Its” goes beyond waste – nitrous oxide toxication is connected to motor vehicle accidents, miscarriages, birth defects, kidney and liver defects, and even death by brain anoxia. Because Whip-Its have a legitimate use in food preparation and baking, limiting their sale further seemed unlikely, thus this bill prohibits stores from selling the container in which the nitrous oxide can be inhaled. This bill will add “nitrous oxide” to the list of substances for which selling paraphernalia is prohibited.
Upcoming Events
Coffee Hour with Sen. Chang and Speaker of the House, Rep. Joe Tate
WHEN: Friday, February 10 at 12 PM
WHERE: Butzel Family Rec. Center, 7737 Kercheval St., Detroit, MI 48214
Coffee Hour with Sen. Chang
WHEN: Friday, February 24 at 10 AM
WHERE: Tim Hortons, 25100 Ryan Road, Warren, MI 48091
Coffee Hour with Sen. Chang and Rep. Donovan McKinney
WHEN: Friday, March 24 at 10 AM
WHERE: Farwell Recreation Center, 2711 Outer Drive, Detroit, MI 48234
Coffee Hour with Sen. Chang and Rep. Mike McFall
WHEN: Friday, March 10 at 12 PM
WHERE: Nandi’s Knowledge Cafe, 71 Oakman Blvd, Highland Park, MI 48203
Thank you! As always, if you have any questions or ideas you’d like to share, please contact my office by calling (517) 373-7346 or emailing senschang@senate.michigan.gov.
Take Care,
Stephanie Chang
State Senator
District 3