Tax & Regulatory Affairs
Michigan Business Tax (MBT)
- Advocate for a repeal of the MBT “surcharge” for all industries
- Include government spending reforms to aid the repeal.
Why? The MBT has some positive aspects, including: personal property tax relief for manufacturers, commercial, and telecommunications providers, incentives for hiring employees and equipment purchases. Despite the incentives built into the MBT, the tax has proven to be more complicated and burdensome than the Single Business Tax (SBT). The state’s projected revenue from the MBT is greater than that of the SBT and the addition of the “surcharge” has accelerated the overall tax liability increase
for many job providers.
Personal Property Tax (PPT)
- Support a full repeal of the PPT
Why? The PPT is a tax on businesses machinery and equipment, furnishings, and office equipment. The tax serves as an administrative burden to businesses and municipalities and has created a disincentive to capital investment, job retention and creation.
Economic Development Incentives
- Support broad based tax relief.
- Include a case by case analysis of credits as a whole to determine if a credit, cash incentive or legislative change should be pursued.
Why? The legislature continues to provide tax relief to specific sectors of the Michigan economy versus creating a competitive tax structure under which all business can operate, invest and succeed. Carving out specific industries or businesses can harm the competitiveness of the overall marketplace. However, Michigan must remain competitive in attracting and retaining businesses. Developing a process for determining the impact of incentives will help determine if individual incentives or broader changes to the tax code will be most beneficial.
Michigan Sales Tax
- Oppose expansion to services
Why? Michigan’s sales tax provides a substantial source of revenue to the state. Expanding the sales tax rate to services will hurt our state’s economic competitiveness, encouraging individuals and businesses to purchase goods and services outside of Michigan.
Oppose the imposition of new or increased taxes or fees on business
- Balancing of State Budget
- Maintain legislative oversight
- Oppose automatic annual increases
Why? Balancing the state budget and controlling the cost of government must be achieved through improved government efficiency, costsaving reform measures and reducing spending, versus the creation of new and/or increased taxes and fees.