Michigan House Bill Could Limit Income Taxes To Where You Live The Bill Itself According to WILX this bill in the Michigan House of Representatives would make it so city income taxes were to only be paid by people who live within that city's limits. This comes into play, especially locally, where if you work in one city but reside in another, your income is also taxed in the city in which you work. While this bill is not up for a vote yet, it does still have its fair share of supporters as well as some opposition. Get our free mobile app