The proposal to scrap the Michigan Business Tax in favor of a 6 percent profits tax for “C” corporations is one step closer to reality, passing the House today on a 56-53 vote. MITA is once again asking industry financial experts to review the legislation and offer any feedback before final policy decisions are made.
When the original MBT was created in 2008, MITA successfully worked to amend the legislation, creating a tax deduction for material costs and subcontract costs from the gross receipts portion of the tax. These changes saved the industry hundreds of millions of dollars a year. While industry efforts were successful in 2008, it is much more difficult to make changes once tax proposals are signed into law. Your feedback is needed promptly.
A copy of HB 4361 can be found by clicking here. A copy of HB 4362 can be found by clicking here. A legislative analysis can be found here.
Send feedback to Keith Ledbetter, MITA director of legislative affairs, at keithledbetter@mi-ita.com.
