Graduated Income Tax Will Not Appear on November Ballot, Mayor Sheffield’s First Budget, and House Passes Open and Obvious

Last night, the graduated income tax proposal announced its end to collecting signatures to appear on the November ballot.

The Detroit Regional Chamber has long prioritized ensuring that Michigan remains a competitive place to live, work, and grow a business. The proposed “Invest in MI Kids” graduated income tax would have moved the state in the opposite direction and placed an undue burden on small businesses and entrepreneurs across Michigan.

The Chamber appreciates the many business and community leaders who engaged on this issue, shared their concerns, and chose not to sign the petition. Your voices mattered.

With the proposal now paused, the Chamber will continue advocating for policies that support economic growth, job creation, and long-term prosperity for Michigan and oppose those that prevent members from creating jobs and opportunities. While this ballot initiative failed, others harmful to business are still in motion, including an effort to amend the Earned Sick Time Act and a change to lobbying laws that would strip away the business community’s first amendment rights on policies that impact their bottom line.

Detroit Mayor Mary Sheffield unveiled her first full budget proposal for the 2026–2027 fiscal year, at just‑over $3 billion, the plan is 1.1% smaller than last year, with a $1.55 billion general fund reflecting a 2.2% decrease. The proposal emphasizes economic mobility, strengthened city services, and targeted investments that closely align with the Chamber’s priorities in workforce stability, small business competitiveness, and neighborhood vigor. Detroit’s fiscal year begins July 1, meaning the budget must be approved before then.

A major focus of the budget is establishing a wage of $21.45 per hour for all full-time city employees. Approximately 900 workers, 70% of whom reside in Detroit, will see pay increases. The administration frames the initiative as an essential workforce investment that reduces turnover, stabilizes households, and strengthens Detroit’s middle class.

Affordable housing remains a central priority. The budget increases the share of revenue from sales of city-owned commercial property directed to the Affordable Housing Development and Preservation Fund from 40% to 100%, generating an estimated $4 million in additional funding.

Additionally, Sheffield’s proposed budget takes another step toward addressing Detroit’s notoriously high property taxes, proposing a 1-mill property tax cut for homeowners.

The budget proposes several programs designed to accelerate small business growth and reduce operational barriers:

• $2.5 million for Motor City Match to help entrepreneurs open or expand.

• A Retail Attraction Fund to draw large retailers and grocery stores into underserved neighborhoods.

• A New Business Emergency Fund to provide support for businesses facing unexpected challenges.

• $1 million to assist legacy businesses operating in Detroit for more than 30 years.

Lastly, the Sheffield administration is launching a comprehensive effort to streamline small business regulations, eliminating unnecessary steps in creating a new business and making it easier to operate. The budget now goes to City Council for discussion.

On Wednesday, the Michigan House passed HB 4582 (Neyer) to restore clarity and fairness to Michigan’s premises liability laws following recent court decisions that have created uncertainty for property owners and small businesses across the state. 

In 2023, the Michigan Supreme Court overturned the longstanding Open and Obvious defense in premises liability cases. This decision removed a safeguard that previously protected property owners against frivolous lawsuits, such as tripping on a bright yellow hazard sign while texting and walking through a store’s aisles.  

The Chamber supports House Bill 4582 to restore balance and predictability to the legal system. The legislation specifies that a property owner owes no duty to protect or warn an invitee about risks from an open and obvious condition. Everyday hazards like a slippery patch of ice on a sidewalk or a pothole in a parking lot fall into this category.  

Currently, 41 states retain some form of open and obvious safeguards. The absence of this defense makes Michigan a national outlier, as it is one of only nine states lacking this protection.   

The bill now advances to the Michigan Senate for consideration.