MITA celebrated a major victory this week with passage of the critical MBT (Michigan Business Tax) materials deduction fix at 1am on Saturday morning—the last day of session before summer break. The MITA MBT fix was a major accomplishment because it was the only one allowed this year, despite many groups protests to fix idiosyncrasies and even catastrophic tax increases for certain industries in the new tax law.
The bill was approved unanimously by both houses of the Legislature and has been sent to the governor for signature.
MITA had been working on the legislation (SB 1217) for six months, after it became evident that bureaucrats within the Department of Treasury were not allowing for the deduction that had been written into the original law. As such, construction materials such as steel, asphalt and other items were required to be included into a company’s gross receipts for the purposes of calculating their MBT liability.
Under the legislation, the tax deduction would be retroactive from January 1, 2008, allowing construction companies who paid the quarterly spike to get a credit for the first quarter overpayment.
If you have any questions please contact Mike Nystrom, Vice President of Government and Public Relations at mikenystrom@mi-ita.com; or Keith Ledbetter, Director of Legislative Affairs at keithledbetter@mi-ita.com; or by calling the MITA office at (517) 347-8336.
