Senate approves economic measures to provide tax relief for Michigan job providers
LANSING—The state Senate today approved legislation that will help revitalize Michigan’s economy by providing needed tax relief to Michigan’s businesses, said Sen. Randy Richardville.
“The Senate passed this legislation to help reduce the tax burden on state businesses,” said Richardville, R-Monroe. “It will reduce the financial burden of the Michigan Business Tax and help make Michigan competitive again.”
Senate Bill 1038 fixes a structural problem in the MBT by amending the definition of “gross receipts,” essentially eliminating the current “tax on a tax.” The measure will provide tax relief to an estimated 50,000 Michigan job providers.
SB 1242 phases out the 21.99 percent MBT surcharge over three years beginning Jan. 1, 2009. The surcharge would be reduced from the current 21.99 percent to 14.66 percent in tax year 2009 and 7.33 percent in tax year 2010, and it would be eliminated in tax year 2011.
The phase-out or reduction of the surcharge was the primary recommendation of the Senate MBT Impact Assessment Subcommittee.
“The Senate listened to concerns voiced by firms across the state that indicated the surcharge impaired their growth and investment in Michigan,” Richardville said. “We took an important step today to help turn around the state’s struggling economy and show businesses that we want them to stay in Michigan.”
SBs 1038 and 1242 now head to the Michigan House.
Posted: Thursday, October 02, 2008
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