taxes

Economy
3:35 pm
Thu February 2, 2012

Report says Michigan's tax changes will hit low income families hardest

The shifting tax burden in Michigan - a chart from a report by the Michigan League for Human Services.
MLHS

A new report by the Michigan League for Human Services takes a look at Michigan's shifting tax policy and it's impact on low-income families.

The report shows what we already know, that businesses in Michigan will receive a tax cut in the state while individuals will pay more.

Low income families, the report's author Joanne Bump concludes, will be hit the hardest.

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Politics
7:32 pm
Wed January 18, 2012

New report: 3 Michigan companies among "Dirty 30" tax avoiders

wikimedia commons

A new report says three Michigan companies spent more on lobbying than they did in corporate income taxes between 2008 and 2010.

Those companies include Michigan’s two biggest utilities, DTE and Consumers Energy. It also includes Ann Arbor-based freight hauler Con-way.

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Economy
5:21 pm
Tue January 3, 2012

State revenue projections continue to climb

The state is bringing in more money than expected. That’s according to a report by the non-partisan Senate Fiscal Agency.

The agency says Michigan ended the fiscal year that ended September 30th with a $1.3 billion surplus. An improving economy and lower income tax refunds are largely credited for the surplus. But much of the windfall has already been dedicated to programs in the current fiscal year.         

David Zin is an economist with the Senate Fiscal Agency. He says the auto industry still has a major impact on the state’s economy.

“People cut back so much on vehicle purchases in the 2008-9 recession, that while sales are low by historical standards, they’re up quite significantly from just a year or two ago,” Zin said.

Zin says the state collected more tax revenue in 20-11 than projected last year. He says the economy is not expected to grow quickly over the next couple years.

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Politics
7:00 pm
Mon December 19, 2011

Politics messes up Christmas tree growers' national ad campaign

Percheron draft horses Collette and Clementine pull families and their fresh-cut Christmas trees back to get shaken and bagged at Horrocks' Nursery in Ionia, Michigan. Michigan produces the widest variety of real Christmas trees than any other state.
Lindsey Smith Michigan Radio.

Sales of real Christmas trees are down more than 20 percent for the past two decades. This season Christmas tree growers wanted to collectively start an advertising campaign to try to reverse that trend. But of all things, politics, got in the way. 

Artificial Christmas trees gaining favor

Real trees still outsell fake trees by about three to one. But artificial tree sales have been increasing for several years. Fake trees now have a slightly higher share of the Christmas tree market than real ones. Michigan is the third largest grower of real Christmas trees in the U.S., harvesting around 3 million a year.

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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
2:46 pm
Sat November 19, 2011

Dear whiskey maker, please come visit MI

user cookbookman17 Flickr

A top Michigan Republican would like the makers of Jack Daniel's whiskey to consider moving north if the company decides to leave Tennessee.

House Speaker Jase Bolger has invited distillery managers to visit Michigan. He says the state's business climate is improving, and he noted the state's large supply of fresh water.

A spokesman for Jack Daniel's parent company said Friday there are no plans to visit Michigan or other places that have made similar offers since a dispute about taxes sprouted in Tennessee.

Some Moore County citizens have proposed a "barrel tax" for the Lynchburg, Tenn., distillery that could raise up to $5 million a year. They're asking Tennessee lawmakers to authorize a local referendum.  

The distillery is waiting to see what happens with the tax issue.

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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Lansing
10:52 am
Tue October 18, 2011

Lansing city council moves 'killer' tax deal forward

The Lansing city council has moved a step closer to approving a tax deal that could lead to an expansion of  Capital Region International Airport.   A final vote is scheduled for next week.   

Businesses at the airport oppose the tax deal.     George Carr owns a hanger at the airport.  He says the tax deal is a 'killer'.

“This…pits the existing tenants and businesses against future tenants and businesses.   It does it by raising taxes…on existing businesses…so they can abate taxes on future businesses that may or may not locate there," says Carr.   

A city economic development official says  the proposal will help improve business at Lansing’s airport.  Bob Trezise with the Lansing Economic Development Corporation says the tax increase is a question of ‘fairness’.  

"We just merely are saying  ‘We wish you to pay a small amount to participate in supporting the airport, like all the businesses and residents of Ingham County do.  And you’re at the airport'," says Trezise.  

The tax deal must be in place by the end of the month so the airport can apply for a state development grant.

Politics
3:18 pm
Sat October 15, 2011

Debate begins over potential Michigan budget cash

It turns out Michigan's state government might have brought in more money from taxes and fees than previously expected in the fiscal year that ended September 30th. That likely will set up a battle this fall over what to do with
the cash, which could total $285 million or more.

Democrats, outnumbered in the Michigan Legislature, say any extra money should be committed first to public schools and education programs that are dealing with budget cuts in the fiscal year that started this month.

Republicans, including those in Governor Rick Snyder's administration, are hesitant to commit to any spending before they have a clearer picture of state revenues.

Snyder's budget office is expected to close the books on the recently completed 2010-11 fiscal year in December.

Politics
1:01 am
Tue October 11, 2011

Stabenow hopes US Senate will move the President's Jobs Bill forward

U.S. Senator Debbie Stabenow (D-MI) speaks duing a news conference at Capital Region International Airport in Lansing, MI
(photo by Steve Carmody/Michigan Radio)

Michigan Senator Debbie Stabenow says she doesn’t know if the president’s jobs bill will clear its first legislative hurdle later today.    That’s when the U.S. Senate is scheduled to take a procedural vote on the $447 billion ‘American Jobs Act’.   

Stabenow, a Democrat, says she’d like to see the legislation move forward.  

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Investigative
6:00 am
Mon September 19, 2011

A city 'reinventing' itself with less money from the state

The Michigan legislature and the governor are working to make Michigan a more business-friendly state by changing the tax structure.  But, while businesses are benefiting from already passed tax reductions --and anticipate more--  the change is costing communities. 

I went to one city to see how it was handling those changes.

When I visited, it was a beautiful day in downtown Monroe.  The city is situated on the River Raisin in the southeast corner of the state, right on Lake Erie.  It’s just 19 miles north of Toledo, Ohio.

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Historic Preservation
1:18 pm
Sun September 18, 2011

People voice their concerns about historic preservation

Developers used tax credits to redevelop a former mental hospital in Traverse City

The state is holding a series of workshops to get the public’s feedback about historic preservation. A meeting is planned in Traverse City on September 21 and in Detroit on October 12. Another meeting will take place in Lansing in January.

People have already attended workshops in Kalamazoo and Midland. Their biggest concern so far is the lack of funding for preservation programs.

Laura Ashlee is with The State Historic Preservation Office.

“As part of the governor’s restructuring of taxes in Michigan for businesses he eliminated the tax credits for historic preservation. There will be a new program, we believe, and we’re going to work with the governor to implement that program.”

Ashlee says historic preservation also makes economic sense. She says people are employed when working on restorations. She also says historic buildings attract people and businesses to that area. 

The State Historic Preservation Office is in the process of writing its plan for the next five years. And the public’s feedback will help shape its plan.

Politics
11:43 am
Fri September 2, 2011

Fairness of pension tax will be decided by Michigan Supreme Court

The Michigan Hall of Justice - where the Michigan Supreme Court sits. Justices will decide on the fairness of the new tax on pensions.
user subterranean wikimedia commons

The Michigan Supreme Court has agreed to let unions and business groups weigh in before the justices rule on whether the state’s new tax on pension income is legal.

The court will hear arguments in the case next week.

Governor Rick Snyder asked the court to cut short any legal challenges with a preemptive ruling.

The governor wants an opinion from the court before the end of the month.

His budget relies on $343 million dollars from taxing pensions, and he wants to avoid months or years of legal wrangling on the question.

The governor asked the court to decide whether the pension tax breaks a promise by the state to retirees and public employees; and whether income limits in the law amount to a graduated income tax – which is prohibited by the state constitution.

The Supreme Court has agreed to accept briefs from retiree associations and unions that oppose the pension tax, as well as business groups that say the tax is fair.

The Michigan Education Association, the UAW, and the AARP are among the groups that filed briefs opposing the tax. They say the pension tax breaks a promise to retirees and public employees, and it violates the state constitution.

Business groups, including the Michigan Bankers Association, and the Small Business Association of Michigan, are backing Governor Rick Snyder. They say the pension tax is fair because it treats all income equally in the tax code.

If the pension tax is upheld, pension income will be subject to the state income tax starting January 1, 2012.

Commentary
9:58 am
Mon August 29, 2011

Taxing Liquor in Michigan

There are taxes, and then there are taxes. Some are straightforward. If I spend ten dollars at the hardware store this afternoon, I know I’ll pay sixty cents in sales taxes.

But other taxes are hidden, and may be higher than we suspect. The Mackinac Center for Public Policy is an independent, non-partisan think tank with a strong fiscally libertarian bias.

Last week, it released a statistical analysis of liquor prices. The center found they are higher in states like Michigan where the state government acts as the statewide wholesale distributor.

How much higher? A little over six percent. They took as their example a fifth of a particular common brand of Scotch. They found that it costs, on average, a dollar fifty-nine more a bottle in the seventeen states like Michigan where government is the wholesaler. The Mackinac Center said this amounted to, “a substantial hidden tax on a commodity already subject to large state and federal taxes.” The implication is that this is bad.

However, I’m not so sure. I suppose it would bother me more if it were a tax on baby formula, or if the tax left liquor costing twenty percent more than in Illinois, for example. But nobody forces anybody to buy a bottle of Scotch.

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Politics
2:32 pm
Thu August 18, 2011

Pontiac emergency manager wants to raise taxes and cut services

Downtown Pontiac, Michigan. The city is at a crossroads as a state-appointed emergency manager tries to keep the city from running out of money.
Dave Garvin Flickr

How to get by with less is an issue all levels of government are facing.

The emergency manager in Pontiac, Michael Stampfler, is proposing a combination of tax hikes and service cuts to cure the city's budgetary ills as reported in the Oakland Press:

Stampfler took to the microphone this morning for an informational meeting about the updated financial plan that could mean property taxes being raised between 6 and 8 mills.

He requested the public and elected officials submit ideas in writing if they have alternatives to what is proposed.

Stampfler released an update of his financial plan, adding $15.05 million to the budget with a combination of cuts and possible tax hikes.

An 8 mill property tax increase would mean that a property owner whose house is assessed at $50,000 would pay $400 more a year in taxes.

This past spring, the assessed value of homes in Pontiac dropped by an average of 21.4 percent, resulting in $2.6 million in lost annual revenues for the city.

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Changing Gears
6:10 am
Wed August 10, 2011

Taxing Cigarettes for the Arts

Fozzman Flickr

It’s a tough time for arts funding around the nation. Kansas, as an example, just cut all its state support. It’s a different story in the Cleveland area, though. That region has found a unique way to fund the arts, and it’s paying off big.

It’s made residents like Samantha Kane arts patrons of sorts. She says she smokes about two or three packs of cigarettes a week. We find her waiting at a bus stop with a stroller in one hand and a cigarette in the other. Since 2006, each cigarette she smokes contributes a penny and a half to Cuyahoga County’s arts organizations.

“I love that it goes to something instead of road work, or you know, padding congressmen’s pockets,” Kane says.

This county cigarette tax really adds up. The group that administers the money is doling out $15 million this year alone. That’s enough to catapult the Cleveland area to among the top public funders for the arts in the nation—many times more than what most states contribute.

“I tell people: you don’t have to smoke ‘em, just buy them,” says Cindy Einhouse, CEO of the Beck Center for the Arts in Lakewood.

It puts on shows, teaches dance and music, and provides summer camps for kids.

Einhouse says the recession hit her organization hard. The Beck Center almost closed its doors in 2009. A wave of private donations helped, but she’s grateful for this county tax.

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Investigative
10:14 am
Tue August 2, 2011

Nobel economists mixed on taxes and jobs equation

Rick Snyder said the Michigan Business Tax was bad for business. 

 “I propose replacing it with a flat six-percent corporate income tax.  Let’s take a job-killer environment; let’s start creating jobs.”

He said it on the campaign trail.  He made the point to business leaders.

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Politics
4:01 pm
Sat July 16, 2011

Levin: It's time to close the overseas tax haven loophole

The sun setting along a beach in the Cayman Islands
(Flickr ebatty)

Michigan Senator Carl Levin says one way to reduce the nation’s federal budget deficit is to close loopholes in overseas tax havens.  Levin says offshore tax loopholes cost the federal treasury 100 billion dollars every year.   He says the complexity of the tax havens make them difficult to trace. 

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Politics
5:10 pm
Thu July 14, 2011

Rebublican leader hopes to sweeten Michigan's film incentives

Taking another look at Michigan's film incentives.
Reinis Traidas Flickr

The old film incentives were scrapped in the tax overhaul approved by the Michigan legislature and the Governor.

They said the old film incentives, which gave production companies a 42% credit on total expenses in Michigan, was too costly ($115 million was spent last year, according to the Mackinac Center for Public Policy).

In it's place, a $25 million film incentive program for Michigan's next fiscal year (which starts October 1).

Now, Senate Majority Leader Randy Richardville says he wants to improve the film incentives.

MPRN's Rick Plua filed this report:

Richardville says his new proposal would focus financial support in activities that reward spending on Michigan products, services, and workers.

He says investors have put money into expensive production facilities, and workers have learned new skills in the belief that incentives would attract more film business to the state.

 “I think the strength of that workforce, the strength of the investments we have in Michigan will cause us to win contracts in competitive situations versus other states. Once we’re done with that, then let’s analyze it to see what we can afford versus what the industry needs to sustain itself here in Michigan.”

Governor Rick Snyder’s office says he would like to see how Michigan’s new incentive program is working before making changes.

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State Legislature
11:18 am
Thu June 30, 2011

Tax on health insurance claims approved

This just in from Michigan Public Radio Network's Laura Weber:

The state Senate has approved a tax on health insurance claims. The measure is necessary to ensure Michigan continues to receive about $800 million from the federal government for Medicaid. The federal government is expected to rule later this year on whether the state's system for funding Medicaid is legal.

The Senate had put the issue up for a test-vote yesterday but it didn't pass. As Rick Pluta noted in a story before the second vote took place:

Governor Rick Snyder has been pressuring the Legislature to adopt a one percent tax on all health insurance claims. That would put Michigan in compliance with federal rules. Otherwise, Michigan could lose 10 percent of its funding for the entire Medicaid program. The claims tax would generate $400 million, and qualify the state for twice that much in federal funds.

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