SBT Tax Rate Tables
Public Act (PA) 115 of 1999 reduced the
SBT tax rate by 0.1% per year beginning January 1, 1999. This will effectively
phase out the SBT over a 23-year period. To protect state programs and services
in future years, the Act includes a unique provision. If the State's Budget
Stabilization Fund (Rainy Day Fund) balance for a fiscal year falls below $250
million, the next calendar year's reduction will not take place. Future rate
reductions will continue once the balance again exceeds $250 million. The
State's Budget Stabilization Fund (BSF) balance for each fiscal year can be
found in the Comprehensive Annual Financial Report (SOMCAFR), published by the
Office of Financial Management (http://www.michigan.gov/budget/0,1607,7-157-13406---,00.html). The
BSF reported a balance of $145.2 million as of September 30, 2002. A chart of
blended rates, which are required for fiscal-year-end returns, is included below
for tax years ending December 1998 through December 2002.
Changes to the Tax Rate for Tax Years
Ending 12/1998 Through
12/1999
| Year End |
Effective
Tax
Rate |
|
12/1998 |
2.3% |
|
1/1999 |
2.2916 |
|
2/1999 |
2.2833 |
|
3/1999 |
2.275 |
|
4/1999 |
2.2666 |
|
5/1999 |
2.2583 |
|
6/1999 |
2.25 |
|
7/1999 |
2.2416 |
|
8/1999 |
2.2333 |
|
9/1999 |
2.225 |
|
10/1999 |
2.2166 |
|
11/1999 |
2.2083 |
|
12/1999 |
2.2 |
Changes to the Tax Rate for Tax Years
Ending 01/2000 Through 12/2000
|
Year End |
Effective
Tax
Rate |
|
1/2000 |
2.1916 |
|
2/2000 |
2.1833 |
|
3/2000 |
2.175 |
|
4/2000 |
2.1666 |
|
5/2000 |
2.1583 |
|
6/2000 |
2.15 |
|
7/2000 |
2.1416 |
|
8/2000 |
2.1333 |
|
9/2000 |
2.125 |
|
10/2000 |
2.1166 |
|
11/2000 |
2.1083 |
|
12/2000 |
2.1 |
Changes to the Tax Rate for Tax
Years Ending 1/2001 Through 12/2001
|
Year End |
Effective
Tax
Rate |
|
1/2001 |
2.0916% |
|
2/2001 |
2.0833 |
|
3/2001 |
2.075 |
|
4/2001 |
2.0666 |
|
5/2001 |
2.0583 |
|
6/2001 |
2.05 |
|
7/2001 |
2.0416 |
|
8/2001 |
2.0333 |
|
9/2001 |
2.025 |
|
10/2001 |
2.0166 |
|
11/2001 |
2.0083 |
|
12/2001 |
2.0 |
Changes to the Tax Rate for Tax
Years Ending 1/2002 Through
12/2002
|
Year End |
Effective
Tax
Rate |
|
1/2002 |
1.9916% |
|
2/2002 |
1.9833 |
|
3/2002 |
1.975 |
|
4/2002 |
1.9666 |
|
5/2002 |
1.9583 |
|
6/2002 |
1.95 |
|
7/2002 |
1.9416 |
|
8/2002 |
1.9333 |
|
9/2002 |
1.925 |
|
10/2002 |
1.9166 |
|
11/2002 |
1.9083 |
|
12/2002 |
1.9 |
Changes to the Tax Rate for Tax
Years Ending 1/2003 Through
12/2003
|
Year End |
Effective
Tax
Rate |
|
2003 |
1.9 No Change |
Changes to the Tax Rate for Tax
Years Ending 1/2004 Through
12/2004
|
Year End |
Effective
Tax
Rate |
|
2004 |
1.9 No Change |
Changes to the Tax Rate for Tax
Years Ending 1/2005 Through
12/2005
|
Year End |
Effective
Tax
Rate |
|
2005 |
1.9 No Change |
These charts should not be
used if the tax year is less than 12 months; instead, a blended rate using the
number of months at the old rate and the number of months at the new rate must
be calculated according to the following example.
Example: 8-month
return, tax year from October 2000 to May 2001:
3
months x 2.1% (old rate) = 6.3%
5 months x 2.0% (new
rate) = 10.0%
6.3% +
10.0% = 16.3%
16.3% / 8 months = 2.0375%
tax rate
