2007 House Bill 5408 ↩

Senate Roll Call 493: Passed

To impose a 13.85 percent surcharge on businesses subject to the Michigan Business Tax, and repeal the new <a href="http://www.michiganvotes.org/2007-HB-5198">6 percent tax on many services</a>. The surcharge will take in approximately $560 million annually, replacing most of the $614 million to avoid spending cuts in Fiscal Year 2008, and $750 million in 2009 and 2010. There would be a $7.5 million cap on the amount of surcharge imposed on any particular company. A $219.4 million “windfall” the state expects from the transition from the old Single Business Tax to the new MBT would be used to reduce the surcharge rate; supposedly this money would otherwise go into the rainy day fund (although current revenue projections already fall short of desired spending in the next year). The surcharge would end after 2010. The bill also slightly eases officer and owner compensaton limits on firms qualifying for a lower small business MBT rate, and directs any MBT revenue increases to reducing the surtax.