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).

Full Bill Text

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).

Full Bill Text

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).

Full Bill Text

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).

Full Bill Text