MITA is urging members to contact their legislators’ offices today to tell them what another 30-percent increase in the Michigan Business Tax (MBT) would do to your business. Click here for a sample letter.
The House voted last week to eliminate the state’s controversial new service tax and replace it with a special 30-percent surcharge on the new MBT. The state Senate is currently working on its own replacement plan. The current plans are to come back the week of Thanksgiving to complete work on the replacement tax.
According to the House proposal, construction companies would be able to deduct the cost of materials and subcontractor costs before determining their tax base. However, the new surcharge would add an additional 32.9 percent to their MBT tax liability in 2008 and set the rate at 27.3 percent beginning in 2009. This proposed change would erase all the gains MITA fought so hard for in the corporate tax debate this summer and fall.
For more details, see the bulletin posted last week titled “Legislators Look to Replace Service Tax with Increased MBT; Corporate Taxes Would Skyrocket 30%”.
Members are encouraged to communicate with MITA staff on your contacts and responses from legislative offices.
To find your state representative, go to: Contact your lawmaker
To find your state senator, to to: Contact your lawmaker
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.
