2007 House Bill 4372 ↩

House Roll Call 209: Passed

To exempt commercial and industrial property from the 18-mill local school operating tax, and exempt just industrial property from the 6-mill state education tax. This is part of the business tax agreed to by legislative leaders and the governor, which will replace all the revenue from the Single Business Tax (SBT), which expires at the end of 2007 (and possibly raise some additional revenue). The main parts of the tax are a 0.8 percent tax on gross receipts minus purchases and inventory, and a 5 percent tax on earnings (these rates are approximate), and an alternative earnings (or profits) tax of 1.8 percent for small businesses. The exempted school taxes would be replaced by revenue from these new taxes.