Senate Joint Resolution N proposes an amendment to the Michigan state constitution to introduce a graduated income tax surcharge for high-income earners. Specifically, individuals with taxable incomes exceeding $500,000 for single returns and $1,000,000 for joint returns will be subject to a five percent surcharge starting from the 2027 tax year. The income thresholds for the surcharge will be adjusted annually based on the percentage increase in the United States Consumer Price Index. This surcharge will be in addition to any existing state income taxes and will be administered in accordance with current tax laws.

The revenue generated from this income tax surcharge is designated for specific public services, including pre-K to 12 education, child care, health and human services, housing, and water infrastructure. The resolution mandates that the Michigan legislature will establish the necessary laws to implement this amendment. The proposed amendment will be presented to the voters of Michigan during the next general election for approval.