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Key Votes

Sub for SB 94 - Michigan Business Tax Act - Key Vote

Michigan Key Votes

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Note

NOTE: THIS IS A SUBSTITUTE BILL, MEANING THE LANGUAGE OF THE ORIGINAL BILL HAS BEEN REPLACED. THE DEGREE TO WHICH THE SUBSTITUTE BILL TEXT DIFFERS FROM THE PREVIOUS VERSION OF THE TEXT CAN VARY GREATLY.

Stage Details

Legislation - Conference Report Adopted (Senate) (32-3) - (Key vote)

Title: Michigan Business Tax Act

Vote Smart's Synopsis:

Vote to pass a bill that creates a new tax on business income.

Highlights:
-Levies a 4.95 percent tax on business profits and a 0.8 percent tax on modified gross receipts for taxpayers with business activity (sec. 201-203). -Levies business taxes only on taxpayers with annual gross receipts totaling more than $350,000 and implements reduced rates for those with receipts totaling between $350,000 and $700,000 (sec. 200, 411). -Provides tax exemptions to certain nonprofit organizations and those engaged in the production of agricultural goods (sec. 207). -Increases tax on insurers from 1 percent to 1.25 percent of premiums (sec. 235). -Subjects financial institutions to a 0.235 percent tax on average net capital (sec. 263). -Establishes a credit for in-state job and property investment up to 65 percent of tax liability that must be taken before any other tax credit (sec. 403). -Establishes a 1.9 percent credit on research and development expenses (sec. 405). -Establishes a credit up to 65 percent of tax liability for a taxpayer that makes an investment of at least $250 million in the private construction of a new stadium with a capacity of at least 14,000 (sec. 410). -Establishes a credit of 100 percent of tax liability for entrepreneurial businesses that have made investments in the state totaling at least $1.25 million, created at least twenty new jobs, and had gross receipts not exceeding $25 million dollars in the previous year (sec. 441). -Credits $136 million in fiscal year 2007-08 and $479 million in fiscal year 2008-09 to the School Aid Fund (sec. 515). -Does not take effect until the enactment of HB4369-4372 (enacting sec. 2).
Legislation - Conference Report Adopted (House) (75-34) - (Key vote)

Title: Michigan Business Tax Act

Vote Smart's Synopsis:

Vote to pass a bill that creates a new tax on business income.

Highlights:
-Levies a 4.95 percent tax on business profits and a 0.8 percent tax on modified gross receipts for taxpayers with business activity (sec. 201-203). -Levies business taxes only on taxpayers with annual gross receipts totaling more than $350,000 and implements reduced rates for those with receipts totaling between $350,000 and $700,000 (sec. 200, 411). -Retains tax exemptions established in the Michigan Single Tax Act (sec. 207). -Increases tax on insurers from 1 percent to 1.25 percent of premiums (sec. 235). -Subjects financial institutions to a 0.235 percent tax on average net capital (sec. 263). -Establishes a credit for in-state job and property investment up to 65 percent of tax liability that must be taken before any other tax credit (sec. 403). -Establishes a 1.9 percent credit on research and development expenses (sec. 405). -Establishes a credit up to 65 percent of tax liability for a taxpayer that makes an investment of at least $250 million in the private construction of a new stadium with a capacity of at least 14,000 (sec. 410). -Decreases the rate of taxation for small businesses from 2 percent to 1.8 percent of adjusted business income and increases eligibility requirements to not exceed $20 million in gross receipts (sec. 417). -Retains tax credits established by the Michigan Single Tax Act (sec. 415-439). -Establishes a credit of 100 percent of tax liability for entrepreneurial businesses that have made investments in the state totaling at least $1.25 million, created at least twenty new jobs, and had gross receipts not exceeding $25 million dollars in the previous year (sec. 441). -Credits $136 million in fiscal year 2007-08 and $479 million in fiscal year 2008-09 to the School Aid Fund (sec. 515). -Does not take effect until the enactment of HB4369-4372 (enacting sec. 2).
Legislation - Bill Passed (House) (62-47) - (Key vote)

Title: Michigan Business Tax Act

Vote Smart's Synopsis:

Vote to pass a bill creating a tax on business income.

Highlights:
- Levies a 6.95% business income tax and a 0.488% net worth tax on every taxpayer with business activity. (sec. 201 and 203). - Exempts the United States government, those exempted from the federal income tax and nonprofit cooperative housing corporations from the tax (sec. 207). - Creates and retains various tax credits, including those related to the Michigan Economic Growth Authority, creating jobs and investing in the state (sec. 401-445) - Distributes $203.7 million of the funds raised from this tax to the school aid fund in the 2007-2008 fiscal year and $613.7 million in the 2008-2009 fiscal year (sec. 515). - Does not take effect unless HB 4369, HB 4370, HB 4371 and HB 4372 are enacted into law (enacting sec. 2).
Legislation - Bill Passed (Senate) (20-17) - (Key vote)

Title: Business and Economic Stimulus Tax

Vote Smart's Synopsis:

Vote to pass a bill creating a tax on business income.

Highlights:
- Exempts the United States government, those exempted from the federal income tax and nonprofit cooperative housing corporations from the tax (sec. 11). - Does not require a taxpayer with less than $350,000 in gross receipts to pay the 0.54% tax (sec. 13). - Does not take effect unless both SB 95 and SB 96 are enacted into law (sec. 91).
Legislation - Introduced (Senate) -

Title: Business and Economic Stimulus Tax

Sponsors

  • Nancy C. Cassis (MI - R) (Out Of Office)
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