Office of the Governor · State of Michigan
Immediate tax forgiveness for residents earning under $125,000 and a 90-day foreclosure moratorium
The State of Michigan imposes a flat income tax rate of 4.25 percent on all residents regardless of financial circumstance, placing a disproportionate burden on working families, lower income households, and those living paycheck to paycheck;
The average Michigan family currently pays approximately $1,496 annually in state income taxes, a sum that for families earning under $125,000 represents a significant and often crushing financial obligation;
Thousands of Michigan residents carry accumulated state tax debt that compounds year over year, trapping working families in a cycle of penalties, interest, and financial hardship from which they cannot escape;
Michigan families should not be penalized by the state for being working class, and the purpose of state government is to serve its people, not to extract wealth from those who have the least to give;
The foreclosure crisis in Michigan continues to displace families, destroy communities, and destabilize neighborhoods, with banks and financial institutions wielding foreclosure as a weapon against homeowners who fall into temporary hardship;
A brief and structured moratorium on land foreclosures will provide working Michigan families the breathing room necessary to stabilize their financial situations without permanently relieving them of their payment obligations;
Government assistance programs exist to bridge the gap between financial hardship and recovery, and it is the obligation of this office to connect Michigan residents with those resources;
The Constitution of the United States and the Constitution of the State of Michigan obligate the Governor to act in the best interest of the health, safety, welfare, and economic security of the people of this state;
All Michigan state income tax obligations and accumulated state tax debt owed to the State of Michigan are hereby forgiven, relieved, and permanently erased for any individual or household with a total annual gross income of $125,000 or less. This forgiveness applies to all outstanding state income tax debt accumulated prior to the date of this Order. No resident qualifying under this provision shall be pursued, penalized, garnished, or otherwise compelled to repay forgiven state tax debt by any Michigan agency, department, or court.
This Order applies exclusively to Michigan state income tax obligations and accumulated state tax debt. It does not apply to federal income tax obligations, local city income taxes, business taxes, or any tax liability owed to an entity other than the State of Michigan. The Michigan Department of Treasury shall within 30 days publish clear public guidance on how qualifying residents may confirm their tax debt has been forgiven and removed from their record.
Any individual or household with a total annual gross income of $125,000 or less as reported on their most recent Michigan state tax return shall automatically qualify for relief under this Order. The Michigan Department of Treasury shall establish a streamlined process for residents who have not filed recent returns to apply for relief under this provision. No qualifying resident shall be denied relief due to unfiled returns without first being given the opportunity to file and qualify.
All bank-initiated and lender-initiated residential land foreclosures in the State of Michigan are hereby immediately suspended for a period of 90 days from the date of this Order. No financial institution, mortgage servicer, or lending entity operating within the State of Michigan shall initiate, advance, or complete a residential foreclosure proceeding during this moratorium period.
The 90 day foreclosure moratorium granted under Section 4 is conditional and not unconditional relief. To maintain protection under this Order, a homeowner must continue making their regular scheduled mortgage payments as required under their existing loan agreement throughout the moratorium period.
The State of Michigan shall during the 90 day moratorium period actively connect qualifying homeowners with all available federal and state assistance programs.
Any financial institution, mortgage servicer, or lending entity found to have initiated, advanced, or completed a foreclosure proceeding in violation of this Order shall be subject to immediate suspension of their operating license within the State of Michigan, civil penalties of up to $50,000 per violation, and referral to the Michigan Attorney General for prosecution. Compliance is mandatory and not optional.
This Executive Order calls upon the Michigan Legislature to immediately draft and pass permanent legislation codifying the tax relief provisions of this Order into Michigan law, establishing a permanent income threshold below which Michigan residents are exempt from state income tax, and creating a permanent framework for foreclosure protection and homeowner assistance during times of economic hardship.
The Michigan Department of Treasury, the Michigan State Housing Development Authority, and all relevant state agencies are hereby directed to fully implement and enforce the provisions of this Order within their respective jurisdictions and to report compliance to the Office of the Governor within 30 days of this Order's issuance.
This Executive Order is issued pursuant to the Michigan Constitution of 1963, Article V, Section 8, and shall remain in full force and effect until rescinded, superseded, or made permanent by act of the Michigan Legislature.
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