2005 Senate Bill 634 ↩

House Roll Call 811: Passed

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 components of this Value Added Tax (VAT). In 2008 the bill would reduce from 5 percent to 2.5 percent each the weighting or apportionment that is based on in-state payroll and property, and increase the sales factor from 90 percent to 95 percent. This would be phased in starting in 2006, when the factors would go to 3.75 percent, 3.75 percent, and 92.5 percent, respectively.