Do I need to inform my received Michigan State Refund in my Michigan Tax Return?

This would be income in your Michigan state return as well, not a deduction.   It will carry over from your Federal return.

Here's more info to help you:

https://ttlc.intuit.com/replies/3300438

Thanks for your reply... I understand that it is an income for my federal return and the state return will import this information as well. But I understand that I do not need to pay State Taxes over this amount so the value I received as State Refund should be deducted from my state income, right?

Your state refund for 2016 is not a state deduction for 2017; it is only for federal tax, and only if you itemize.

Ok.. Thanks...