michigan business tax

Politics & Government
5:34 pm
Thu May 22, 2014

Voters will get their say on Michigan's Personal Property Tax August 5

Credit Steve Carmody / Michigan Radio

Michigan voters will have a chance to drive the final nail into the coffin of the state’s  Personal Property tax this summer. The Board of State Canvassers today designated the PPT question as Proposal 1 on the August 5 ballot. It will be the only statewide question on the ballot.  

Businesses pay the tax based on the value of their equipment and other assets. Many Michigan communities rely on the tax revenues to pay for basic city services.

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Politics & Government
3:27 pm
Sat March 29, 2014

Gov. Snyder signs bills so Michigan cities don't lose revenue

The bipartisan legislation Gov. Rick Snyder signed Friday incorporates a recent deal worked out among his administration, municipalities and business leaders to fully reimburse cities for their lost personal property tax revenue with other state revenue.
Steve Carmody Michigan Radio

LANSING, Mich. (AP) - Michigan Governor Rick Snyder has signed legislation designed to ensure local government budgets aren't hurt if manufacturers and small businesses get planned tax cuts.

A phase-out of taxes on industrial machinery starts in 2016 and is underway for small businesses with equipment. The tax cuts will be halted if a statewide vote fails in August.

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Politics & Government
2:17 pm
Sat March 22, 2014

Snyder touts benefits of foreign investment for Michigan

Governor Rick Snyder

Governor Snyder says a new survey shows his efforts to attract more international investment in Michigan is paying off.

The “insourcing” survey cites Michigan for adding more than 250,000 private sector jobs since 2010, and 32,000 from foreign investment in 2011 alone –more than twice as many as any other state.

The survey found that the heads of multinational firms are cautiously bullish about doing business in the U.S., but things could be better.

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Politics & Government
11:44 am
Sun February 23, 2014

Deal assures Michigan cities won't be hurt by business tax cut

An agreement reached among Snyder's administration, business interests and local officials would make sure municipalities opposing a loss in revenue are mostly kept whole.
Steve Carmody Michigan Radio

LANSING – Michigan lawmakers this week will propose a deal to guarantee that local governments lose little to no revenue from a planned phase-out of taxes on industrial machinery and small businesses' equipment.

The business tax cuts were enacted by Gov. Rick Snyder and legislators at the end of 2012. But they will be halted if a statewide vote fails in August.

An agreement reached among Snyder's administration, business interests and local officials would make sure municipalities opposing a loss in revenue are mostly kept whole.

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Politics & Government
9:00 am
Mon April 1, 2013

Michigan's governor doesn't think the state should repeal new tax on pensions

Gov. Rick Snyder (R-MI) (file photo)
Steve Carmody/Michigan Radio

Governor Rick Snyder is cool to a proposal to roll back Michigan’s new pension tax.

The pension tax was part of a package enacted in 2011 that eliminated the Michigan Business Tax.

A group of five Republican state senators wants to repeal the pension tax and reinstate some homestead property tax credits.

Governor Snyder says the tax on pensions is just a matter of fairness, so that the tax burden falls equally. The governor insists the tax that pensioners are now paying is not too much ask.

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Business
11:38 am
Sun March 31, 2013

Michigan processes shorter corporate tax returns

LANSING, Mich. (AP) - Michigan says the new corporate income tax returns it's processing are much shorter in length than other business tax returns.

The state Department of Treasury says the returns submitted to date average 17 pages. That's 41 fewer pages than the average Michigan Business Tax return.

The Corporate Income Tax approved in 2011 took effect for the 2012 tax year. Some businesses still file an MBT return because they qualify for certain tax credits.

The state says some MBT returns are longer than 1,000 pages.

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Economy
4:40 pm
Tue January 29, 2013

Stateside: Changes to tax refunds may come as a surprise to some

wikimedia commons

Susan Tompor provides an in-depth look at taxes.

The following is a summary of a previously recorded interview. To hear the complete segment, click the audio above.

For those who have not yet completed your 2012 tax returns- brace yourselves.

In 2011 Governor Snyder signed a tax overhaul package that included $1.4 billion  in additional income taxes and $1.7 billion in business tax cuts.

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Politics
4:12 pm
Wed April 25, 2012

Governor Snyder talks business climate, jobs, transport, and more at online town hall

Snyder discussed DDOT busses during his townhall meeting online Wednesday.
Sarah Hulett Michigan Radio

Governor Rick Snyder discussed all kinds of issues during an online townhall meeting today. People participated in the town hall online and remotely from Traverse City, Grand Rapids and Detroit.

“My question is what can be done about the horrible transportation situation in the City of Detroit?” Shelia Foreman asked Snyder from Wayne State University’s TechTown. “I have had relatives lose their jobs because they cannot get to them. Do you have a solution for that?”

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Politics
5:50 pm
Fri November 25, 2011

Michigan's charitable tax credit expires Dec. 31

Michigan's charitable tax credit allows taxpayers to essentially double their contributions to certain nonprofits
user Penywise morguefile

Nonprofits across Michigan are doing their annual end-of-year holiday push for financial donations. This will be the last time donors will be able to take advantage of a charitable tax credit.

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Politics
2:39 pm
Wed November 16, 2011

Report: Michigan and other states raising taxes on the poor

Michigan did not fall on the list of states taxing two parent families of four with incomes below the poverty line.
Center on Budget and Policy Priorities

The report was put out by the Center for Budget and Policy Priorities. Its authors write there is "significant room for improvement" in how states tax low-income families. Some of it is inevitable, they write, since states are facing "the most difficult fiscal conditions in decades.":

But a few states have moved significantly backward in this area, raising taxes on low-income working families in order to finance tax cuts that benefit corporations and wealthy individuals.  Michigan, New Jersey, and Wisconsin, for example, have scaled back their EITCs [Earned Income Tax Credits] over the last two years while cutting business taxes, taxes on the wealthiest families, or both.

The Associated Press' Kathy Barks Hoffman wrote about the report. She writes that Michigan's low-income families will lose around $260 million annually next year, while businesses will be getting "a $1.1 billion tax break starting in January and a $1.7 billion tax break the year after":

Michigan Gov. Rick Snyder originally wanted to eliminate the state Earned Income Tax Credit, but agreed to reduce it from 20 percent of the federal credit to 6 percent for tax year 2012. He said earlier this year that the state needed to make cuts to balance the budget and noted no cuts were being made in Medicaid programs providing health care to low-income working families. He also has said the business tax cuts will create employment opportunities.

Politics
11:51 am
Mon November 7, 2011

Michigan's charitible giving tax credit expires at the end of the year

The Michigan charitable giving tax credit expires at the end of this year.
John Morgan Flickr

(*Editor's note - Michigan Radio, as a licensee of the University of Michigan, benefits from this tax credit)

The Michigan charitable giving tax credit expires at the end of the year, and charities are expecting the amount people donate to charities to drop as a result.

The charitable giving credit was ended as part of Governor Snyder's effort to pay for a business tax cut of more than $1.5 billion.

The credit allows Michigan taxpayers to essentially double their contribution when they give to community foundations, homeless shelters, food banks and public institutions (such as Michigan universities, museums, public libraries, and public broadcasting stations).

For a single filer, half their contribution can come off their Michigan tax bill up to a $200 contribution. Joint filers can take half of a $400 contribution.

Brian Conner of the Detroit News wrote a piece on the expected effects of the credit's expiration.

Conner writes that charities in Michigan don't quite know how much of their donations are tied to the credit, but the expect to take some kind of a hit.

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Education
11:48 pm
Fri May 20, 2011

Kent County Republicans, Democrats field questions about paying for public education

State Rep. Dave Agema, left, and Rep. Brandon Dillon react to a woman who stood and demanded Agema "speak to us in a professional manner."
Lindsey Smith Michigan Radio

About 500 people in West Michigan spent a couple hours Friday night in Grand Rapids, talking with their state representatives about how to fund public education. 

The forum was rescheduled from last week after a fire marshal shut it down in Lowell (20 miles west of Grand Rapids) because so many people showed up it broke the fire code of the building.

Last night the crowd was  passionate, at times interrupting and booing Republican lawmakers.

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Economy
6:25 pm
Thu May 19, 2011

Michigan economist on state's new tax structure

Charles Ballard, economist Michigan State University
Michigan State University

Governor Snyder and the legislature have come to an agreement on the state’s new tax structure. Does it make fiscal sense?

Michigan Radio's Jennifer White spoke with Charles Ballard, an economist at Michigan State University and author of “Michigan’s Economic Future.” Here's the interview.

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Economy
6:54 pm
Fri May 13, 2011

Business leaders celebrating the end of the Michigan Business Tax

Many of the same West Michigan business leaders who voted in the 2008 Policy Forum attended a keynote speech by Gov. Rick Snyder in April. The Grand Rapids Area Chamber of Commerce hosted the occasion, and started the West Michigan Policy Forum.
Russ Climie Tiberius Images

Governor Rick Snyder is expected to sign the tax overhaul that replaces the business tax with a 6% corporate income tax on profits.

Leaders of the West Michigan Policy Forum touted "the MBT is dead!” in an email to around 600 supporters Friday. Those supporters voted 'eliminating the business tax' as their top priority during the Policy Forum’s first conference in 2008.

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Politics
4:26 pm
Fri May 13, 2011

Governor Snyder defends tax plan

Russ Climie Tiberius Images

Governor Rick Snyder defends his tax overhaul, which has drawn a lot of criticism from the public in recent weeks, saying that he is confident that cutting taxes for Michigan businesses will create jobs. The Legislature approved his tax plan yesterday and it’s on its way to Snyder’s desk for his signature.

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Politics
5:21 pm
Thu May 12, 2011

Tax overhaul passes Michigan Senate

The Michigan Senate passed a tax overhaul plan today that rolls back taxes on Michigan businesses by about $2 billion. The Michigan House is expected to quickly concur with the Senate action and send the measure to Governor Snyder for his signature.
Lester Graham Michigan Radio

Update 5:21 p.m.

Republicans eked out a legislative victory today as Governor Rick Snyder's tax overhaul package cleared the state Senate.

It fell to Snyder’s lieutenant governor to cast the tie-breaking vote.

Lieutenant Governor Brian Calley delivered a short speech before he cast the vote to break the deadlock on the tax reform package he had a hand in designing.

Calley predicted some lawmakers will pay a price for supporting the administration's tax reforms.

"Because real change comes with real consequence," said Calley. "Real change will come with drama."

Seven Republicans joined Democrats to vote against the package, largely because the measure will end the tax exemption on pension income for anyone born after 1946.

Democrats say it will shift the burden of paying for government services to families and the elderly.

State Senator Steve Bieda was one of the Democrats who voted against the measure.

"It’s shifting the tax to those who are least able to pay in our society," said Bieda. "We are talking about the elderly, people who are living on pensions are going to see a huge increase. I think it’s unjust, unwise, and it’s certainly very unfair."

Bieda tried to delay the vote until next week when the state adopts new revenue numbers. It’s expected there will be a windfall of more revenue than was anticipated at the beginning of the year.

The package eliminates the Michigan Business Tax in favor of a corporate profits tax.

It also eliminates a host of tax breaks, including the income tax exemption for people on pensions.

Overall, the package rolls back taxes on businesses by nearly $2 billion. Most of the businesses that would benefit are small and medium-sized corporations.

Republicans say the result will also be a tax code that is simpler and easier to follow.

State Senate Majority Leader Randy Richardville says there are some hard choices in the package, but they combine to make Michigan more business-friendly.

"So we put the good, the bad, the ugly altogether in one package and said, we believe the greater good is worthy of some of the not-so-good or ugly, so to speak."

The Senate bill restores the earned income tax credit for working poor families, but at a reduced rate.

The House is expected to quickly concur with the Senate action and send the measure to Governor Snyder for his signature.

3:55 p.m.

Lieutenant Governor Brian Calley has cast the tie-breaking vote to win Senate approval of Governor Rick Snyder's tax overhaul plan.

The package scraps the Michigan Business Tax in favor of a corporate profits tax.

It will be a net tax cut on many small and mid-sized businesses.

It also eliminates a host of tax breaks, including the income tax exemption for pensions.

Republicans say the result will be a tax code that is simpler and easier to follow and more business-friendly.

Politics
11:46 am
Thu May 12, 2011

Close vote expected on broad Michigan tax proposal

The Michigan Senate is voting on a bill that would overhaul Michigan's tax structure today.
user cedarbenddrive Flickr

Michigan could see some sweeping changes to its tax structure after today's vote.

Michigan's former Senate Majority Leader Mike Bishop sent out this Tweet:

"Here we go ... Senate in caucus now, but will soon emerge to vote on Gov's tax proposal. If it passes, I expect it will be by a vote or 2."

From the Associated Press:

The Republican-led Michigan Senate is preparing for what likely will be a close vote on a proposal that would significantly shake up the state's tax structure.

The vote planned Thursday is on a proposal that would cut overall business taxes by about $1 billion in the fiscal year starting Oct. 1 and $1.7 billion the following year. The key would be replacing the Michigan Business Tax with a 6 percent corporate income tax while eliminating many types of tax credits and exemptions.

Some exemptions on retiree income would end, which has drawn opposition from some Republican lawmakers. Some Republicans also will oppose the measure because it would delay scheduled rollbacks in Michigan's personal income tax rate, which is 4.35 percent.

A committee reported the bill to the Senate floor Thursday.

Politics
3:03 pm
Wed May 11, 2011

State Senate debate continuing on Michigan tax proposal

A Michigan Senate committee isn't yet ready to make a decision on a broad plan that would significantly change business and income tax structures in the state.

The Senate Reforms, Restructuring and Reinventing Committee adjourned Wednesday without a vote on the legislation.

It's still possible the proposal will be voted on in the Republican-led Senate as early as Thursday.

The plan backed by Republican Gov. Rick Snyder would cut overall business taxes about $1 billion in the fiscal year starting Oct. 1 and $1.7 billion the following year. The key would be replacing the
Michigan Business Tax with a 6 percent corporate income tax while eliminating many types of tax credits and exemptions.

Some exemptions on retiree income would end, which has drawn opposition from some Republican lawmakers.

Politics
5:17 pm
Thu April 28, 2011

Governor Snyder's tax overhaul plan passes the House

Governor Snyder's tax plan has passed the State House.
Lester Graham Michigan Radio

Update 5:14 p.m.

Governor Rick Snyder’s tax overhaul plan began working its way through the Legislature today as it cleared the state House by a mostly party-line vote.

The Republican tax reform bill would replace the complex and unpopular Michigan Business Tax with a corporate profits tax.

Two-thirds of Michigan businesses would not have to pay the tax.

Part of the revenue lost to the state would be made up by eliminating dozens of tax breaks.

Many of them go to businesses and charities. Also gone would be earned income credit for working poor families and the income tax exemption for most seniors on pensions.

“This is a turnaround moment for Michigan,” said Republican House Speaker Jase Bolger. “Today’s winners are our local small business owners. Today’s winners are the unemployed because now those small business owners can create jobs.”

Democrats say it’s not fair to make working families and seniors make up the difference while most businesses pay less. Democratic state Representative Barb Byrum says it's not a fair trade.

“This legislation is not a shared sacrifice and should not be adopted. Today is just another day another day to give an 82% tax break to wealthy, corporate special interests. Another day to take from our children, our seniors, and our working poor."

The measure now goes to the Republican-controlled state Senate.

3:41 p.m.

Governor Rick Snyder’s tax overhaul plan has begun its march through the Legislature.

It won the approval of the state House by a mostly party-line vote.

The measure would scrap the complicated and unpopular Michigan Business Tax.

It would be replaced by a corporate income tax that would not be paid by two-thirds of the state’s businesses.

Part of that lost revenue would be made up by ending many tax breaks for businesses, working poor families, and seniors on pensions.

Investigative
4:20 pm
Wed April 27, 2011

Some legislators voting to eliminate their own business taxes

Lester Graham Michigan Radio

The Michigan legislature and Governor Rick Snyder are considering a new tax structure for the state.  It would cut the state budget and shift some of the tax burden from businesses to individuals.  The Governor has said up to two-thirds of Michigan’s businesses might not have to file a state tax return at all.  Reporters Lester Graham and Bridget Bodnar with Michigan Watch learned that means some legislators who own businesses could be voting to cut their own taxes.

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