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.
Referred to the Committee on Finance
And discharged from committee to the Senate floor on March 15, 2007. The discharge means the bill could be put to a full Senate vote at any time. Reportedly, Senate Republicans might want to force a vote on Gov. Granholm's tax increase proposals, in the belief that not all members of the Governor's party support them.
