SBT - Waiting for the Bills
January 10, 2007January 10, 2007: Waiting for the Bills. The first day of the 2007 Legislative session opened today, Wednesday, January 10th at noon. The business taxpayers of Michigan anxiously await introduction of bills detailing a possible replacement tax for the Michigan single business tax. The Granholm administration is expected to reintroduce the Michigan Business Tax. Rumor has it that the Michigan Business Tax will undergo some modifications prior to its reintroduction but just how is unknown. It's possible that the fallback tax – the reversion to a gross receipts tax at a rate of .375% if the MBT is found unconstitutional – will be gone. State Treasurer Kleine acknowledged in a hearing last December that inclusion of the fallback tax may have been a tactical error. The Administration would have preferred to get its bill passed in lame duck when there were no other options around. Now, the Michigan Chamber of Commerce's replacement tax plan is expected to be introduced in bill form early this Legislative session. Having at least two options for a replacement tax will make the debate more complex and interesting. Stay tuned for details of the bills expected sometime in the next two weeks.
June Summers Haas