BY CAITLIN DeLUCA
Capital News Service
LANSING — Employers across the state would start withholding city income taxes from employees who live in cities that have income taxes even if the business isn’t in the city, according to bills proposed in the Legislature. The bills, sponsored by Sen. Goeff Hansen, R-Hart, and Rep. Al Pscholka R-Stevensville, would mandate that suburban employers collect the local income tax of employees who live in the 22 cities across the state that impose the tax. The Senate version has cleared the Senate Committee on Government Operations and the House version is still in the House Committee on Tax Policy. Employers in cities with income tax now have to withhold and remit the tax on behalf of their employees. With the proposed change, employers who are not located in the city and don’t receive services from them would collect the tax from employees living in income taxing cities, said Tricia Kinley, senior director of tax and regulatory reform for the Michigan Chamber of Commerce.