Introduced
by
To establish a new business tax to replace the revenue from the Single Business Tax (SBT), which expires at the end of 2007. This new “Michigan Business Tax” proposed by Gov. Granholm would impose levies on business profits, gross sales and on a firm’s total assets, very broadly defined. The asset tax would apply not just to assets located in Michigan, but all a firm’s assets, multiplied by the proportion of its sales that take place in Michigan. The proposal would also exempt business tools and equipment (the “personal property tax”) from the 6-mill state education tax and the 18-mill school operating tax. This would save businesses approximately $600 million, which amounts to around one-third of total personal property taxes (firms would still be subject to local personal property taxes.) There is also a tax credit for workers employed in a company headquarters located in Michigan. In the aggregate, the tax changes would take in approximately $480 million less than the SBT. However the bill is tie-barred to Senate Bill 307 (or House Bill 4368), which means it cannot become law unless one of those (identical) bills do. This bill contains the personal property tax state education tax exemptions.
Referred to the Committee on Tax Policy
Reported without amendment
With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
Substitute offered
To replace the previous version of the bill with one that makes it part of the <a href="http://www.michiganvotes.org/RollCall.aspx?ID=232141">House Democrats' SBT replacement proposal</a>.
The substitute passed by voice vote
Passed in the House 109 to 0 (details)
To exempt business tools and equipment (the “personal property tax”) from the 6-mill state education property tax and the 18-mill school operating property tax, as part of the "Michigan Business Tax" proposal described in <a href="http://www.michiganvotes.org/2007-HB-4367">House Bill 4367</a>. Reductions in state and local school tax revenues would be reimbursed by the proportionately higher business tax rates that bill would impose.
Referred to the Committee on Finance
Substitute offered
To replace the previous version of the bill with one that makes it fit with the new "Michigan Business Tax" described in <a href="http://www.michiganvotes.org/2007-SB-94">Senate Bill 94</a>, which will replace the taxes formerly collected under the Single Business Tax.
The substitute passed by voice vote
Passed in the Senate 36 to 0 (details)
To exempt industrial business tools and equipment (personal property) from the 6-mill state education property tax, and all business personal property from the 18-mill local school operating tax, as part of the "Michigan Business Tax" proposal described in <a href="http://www.michiganvotes.org/2007-SB-94">Senate Bill 94</a>. Reductions in state and local school tax revenues would be reimbursed by the proportionately higher business tax rates that bill would impose.
Passed in the House 109 to 0 (details)
