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SBT - February 7, 2007 Administration Tax and Budget Plan Sneak Peak

February 7, 2007
Governor Granholm will propose a 2 percent sales tax on services and a $450 million dollar tax cut for business when she unveils her budget plan tomorrow.  The sales tax on services will apply to all services, including business to business but excluding health care and educational services.  The replacement tax for the SBT will be a slightly modified version of the Michigan Business Tax proposed last November.  The tax will be on a base of gross receipts, assets and net income and will include a tax credit for businesses headquartered in Michigan.  Also included in the proposal will be an increase in liquor tax, estate tax, and cigarette tax.  A number of undefined "loophole" closings will be included.  We are all anxiously awaiting further details.