Introduced
by
To revise the “sales factor apportionment” in the formula that determines the base on which a company’s Single Business Tax is levied. This provision relates to how much of a company’s sales are outside vs. within Michigan, which is one of the elements of a firm’s SBT base. The bill would base the apportionment formula 100 percent on sales, eliminating property and payroll factors. 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 very slightly revised version of the bill that makes it a 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>. 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 phases in the SBT apportionment revision by 2008.
The substitute passed by voice vote
Passed in the House 57 to 50 (details)
To revise the “sales factor apportionment” in the formula that determines the base on which a company’s Single Business Tax is levied. This provision relates to how much of a company’s sales are outside vs. within Michigan, which is one of the elements of a firm’s SBT base. The bill would phase in an apportionment formula based 100 percent on sales by 2008, eliminating property and payroll factors. 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 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
Passed in the Senate 38 to 0 (details)
To reduce to 2.5 percent each 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 95 percent on sales.
Passed in the House 106 to 0 (details)
