June 28, 2007
June 28, 2007
LANSING - Governor Jennifer M. Granholm today applauded legislative approval of the new Michigan Business Tax (MBT).
"The new Michigan Business Tax will make Michigan's business climate competitive and serve as a tool to attract jobs and job providers," Granholm said. "State lawmakers are to be congratulated for passing a new business tax that will make Michigan more competitive and help attract and keep new job providers. This historic legislation is a win for both businesses and citizens and completes another plank in our plan for economic growth."
The new structure provides tax cuts for more than seven out of ten Michigan businesses and provides tax cuts to both small businesses and Michigan's major manufacturers. It is a fair, simple tax that will provide the same amount of revenue as the Single Business Tax it replaces, while encouraging job creation in Michigan.
The MBT will help stimulate Michigan's economy by relying more on profit, providing tax credits to companies that locate or create new jobs in Michigan and tax credits for entrepreneurial and R&D activities. In addition, a significant cut in the personal property tax will help the state's largest employers and commercial businesses.
Under the new MBT, the personal property tax rate will be reduced by 12 mills for commercial property and 24 mills for industrial property, with a 35 percent refundable credit. Qualifying small businesses will have the option to pay an alternative tax of 1.8 percent of adjusted business income. The insurance premiums tax will increase to 1.25 percent with credits.
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