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 Single Business Tax Replacement Debate…What’s Next? Despite strong lobbying efforts of the Granholm administration, including the Governor, State Treasurer and other high-level officials, no action was taken on the proposed Michigan Business Tax (MBT) as the 2006 Legislative session came to a close. Introduced late last fall, the MBT contains three tax components – gross receipts, assets and business income – and maintains the Governor’s strongly-held belief that a new tax structure must maintain current revenue levels. A brief overview developed by the Governor’s office, as well as the five pieces of legislation required by the legislation, are posted to the MACPA’s web site. In addition to the Governor’s proposal, the Detroit Regional Chamber of Commerce, the Grand Rapids Chamber of Commerce, the Michigan Chamber of Commerce and others continue to push their respective plans. A brief summary of these plans was printed in the July/August 2007 issue of Leaders’ Edge. While it is unlikely the Governor’s proposal as introduced will become Michigan’s new business tax structure, two significant events have taken place since November that make it considerably more likely the eventual structure will have the Governor’s fingerprints on it. First, the citizens of Michigan woke up on Wednesday, November 8, 2006 with some surprising election results. In the last few weeks of the gubernatorial campaign, it was clear to most that Governor Granholm would earn another four years in office over challenger Dick DeVos. However, very few could predict the 14-point landslide by which she won. Plus, in the surprise of the night, Democrats took control of the Michigan House of Representatives providing the Governor with her first “sympathetic” legislative chamber. The second factor leading to the likely passage of a new tax plan, either introduced or approved by the Granholm administration, is her release of the proposed Michigan Business Tax. The proposal may not be complete or perfect; but, it does address a significant portion of the criticism received by the Governor and the administration about the first SBT replacement recommendation of 2005, the Michigan Jobs and Investment Act.The MACPA Subcommittee on Business Tax Restructuring has begun to analyze the MBT, and will be in regular communication with representatives from the Granholm administration and the Legislature as the debate continues. |
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| PO Box 5068 Troy, MI 48007-5068 Phone: 248.267.3700 Fax: 248.267.3737 E-mail: macpa@michcpa.org | |
