Introduced
by
To establish a Single Business Tax industrial property and research and development personal property credit. This would allow an SBT credit based on the amount of personal property tax a firm pays on industrial equipment or R&D equipment. Personal property tax is levied at the same rate as regular property taxes on real property (land and buildings). This is part of a package comprised of House Bills 4969 to 4974, which contain the tax cut portions of <a href="http://www.michiganvotes.org/2005-HB-4476">Gov. Jennifer Granholm’s SBT revision proposal</a>, but not the tax increases that make the governor’s proposal revenue-neutral.
Referred to the Committee on Tax Policy
Reported without amendment
A new version of the bill that is part of a House Republican business tax cut proposal. This was assembled as an alternative to Gov. Jennifer Granholm's revenue-neutral <a href="http://www.michiganvotes.org/2005-HB-4476">Single Business Tax revision proposal</a>. The new version would provide manufacturing firms with a 25 percent credit against the personal property they pay on industrial tools and equipment, and provide all other firms with a 10 percent credit for non-industrial business equipment. See also House Bills <a href="http://www.michiganvotes.org/2005-HB-4922">4922</a>, <a href="http://www.michiganvotes.org/2005-HB-4973">4973</a> and <a href="http://www.michiganvotes.org/2005-HB-5048">5048</a>.
Substitute offered
To replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described.
The substitute failed by voice vote
Substitute offered
by
To replace the previous version of the bill with one that contains the personal property tax SBT credit originally placed in House Bill 5108.
The substitute passed by voice vote
Passed in the House 57 to 50 (details)
To phase in by 2009 a refundable Single Business Tax credit equal to 20 percent of the property taxes paid by businesses to the state and local governments on industrial (but not commercial) tools and equipment ("personal property tax"). For industrial personal property acquired in 2006 and 2007, the SBT credit would be 50 of the personal property tax paid in the first year and 30 percent in the second year. If certain state revenue thresholds are met, the permanent credit could rise to 25 percent. The bill is part of a tax revision package that trades off tax cuts with certain increased tax levies and other measures to create a net business tax cut. See House Bill 5108.
Referred to the Committee on Finance
Substitute offered
To replace the previous version of the bill with one that makes it part of a business tax cut proposal offered by Senate Majority Leader Ken Sikkema as an alternative to a <a href="http://www.michiganvotes.org/RollCall.aspx?ID=173410">larger tax cut passed by the House</a>. This is linked to <a href="http://www.michiganvotes.org/2005-SB-633">Senate Bill 633</a>, which would cut the SBT rate from 1.9 percent to 1.84 percent. The substitute makes the personal property tax (PPT)credit nonrefundable, meaning that only firms that owe more SBT than PPT would get the full value of the credit.
The substitute passed by voice vote
Passed in the Senate 22 to 16 (details)
To authorize a nonrefundable Single Business Tax credit equal to either 10 percent or 20 percent (depending on when the property was purchased) of the property taxes paid by businesses to the state and local governments on industrial (but not commercial) tools and equipment ("personal property tax"). It also authorizes temporary personal property tax credits that are larger. The bill is part of a tax revision package that trades off tax cuts with certain increased tax levies and other measures to create a net business tax cut. See Senate Bill 633.
Substitute offered
by
To replace the previous version of the bill with one that reflects the agreement struck between Gov. Jennifer Granholm and Republican legislative leaders to adopt modest business tax cuts and a scaled-down "21st Century Jobs Fund." See House-passed version for details.
The substitute passed by voice vote
Amendment offered
by
To not link the bill to Senate Bill 634, which would eliminate the weighting or apportionment of in-state payroll and property in the formula used to calculate a firm's Single Business Tax liability, and base the liability 100 percent on sales.
The amendment passed by voice vote
Passed in the House 104 to 1 (details)
To authorize a refundable Single Business Tax credit equal of 15 percent of the property taxes paid by businesses to the state and local governments on industrial (but not commercial) tools and equipment ("personal property tax). This is part of an agreement struck between Gov. Jennifer Granholm and Republican legislative leaders on <a href="http://www.michiganvotes.org/RollCall.aspx?ID=176636">modest business tax cuts</a> and <a href="http://www.michiganvotes.org/RollCall.aspx?ID=176597">subsidies for selected businesses</a>.
Passed in the Senate 38 to 0 (details)
