Michigan Department of Treasury

Michigan taxpayers face delayed tax refunds due to a troubled Department of Treasury software rollout, which caused erroneous notices, missed callbacks, and long wait times. Taxpayers and accountants report inconsistent communication and unclear explanations, with a treasury spokesperson attributing delays to incomplete information and a rushed software upgrade. The department is upgrading its phone system to address ongoing issues.

The Detroit school district lost a court appeal against the state, requiring it to seek voter approval for a ballot measure to collect operating tax revenue. The ruling upholds that Detroit Public Schools (DPS) cannot use operating tax funds to pay capital debt, forcing the Detroit Public Schools Community District (DPSCD) to rely on state funding unless voters approve a shift in tax collection authority by 2027.

The Detroit Public Schools Community District (DPSCD) must seek voter approval for a ballot measure to collect operating tax revenue after a court upheld a ruling against its use for debt repayment. The Michigan Court of Appeals sided with the state, stating operating taxes cannot be used for nonoperating debt, forcing DPSCD to rely on state funding until a new tax collection arrangement is approved.

Approximately 250,000 Michigan tax filers are still waiting for refunds due to delays caused by the state’s transition to a new tax processing system, GenTax. The system flags discrepancies for manual review, leading to processing delays, while officials attribute the upgrade to improved fraud prevention.

Michigan’s new tax processing system, GenTax, is causing delays for approximately 250,000 filers awaiting refunds. The system, replacing a 40-year-old mainframe, performs detailed line-by-line evaluations and enhanced fraud checks, leading to manual reviews for incomplete or inconsistent returns.