The governor and legislative leaders announced at a press conference last night that they have come to an agreement on the framework of a new business tax plan.
Details are still emerging, but two-thirds of the new Michigan Business Tax (MBT) would be a modified gross receipts tax or “margins tax”. The tax would be under .8 percent and would be calculated based on sales minus purchases of tangible property. The other one-third of the new MBT would be a business income tax under 5 percent.
MITA has worked hard for several years to promote significant Personal Property Tax (PPT) relief as part of the overhaul of the state’s corporate tax structure. Although MITA had hoped to see greater relief for the heavy construction industry, industrial companies would see a 65 percent personal property tax credit (24 mills) while commercial businesses would see a 23 percent personal property tax credit (12 mills) under the new plan.
Bill drafters are busy readying the legislation and action is likely to begin next week.
Because policymakers agreed only to a framework of the MBT, MITA is working diligently to uncover more details as they become available and will post them here.
Click here to see the conceptual agreement.
MITA wants to thank member companies who offered feedback on the various business proposals over the last few months. Your input allowed us to make a difference on the final business tax replacement plan agreed to by policymakers.
If you have any questions, please contact Mike Nystrom, Vice President of Government & Public Relations at mikenystrom@mi-ita.com or Keith Ledbetter, Director of Legislative Affairs at keithledbetter@mi-ita.com, or call the MITA office at (517) 347-8336.
