Advocacy for Michigan Small Business-Michigan's Single Business Tax Update

Michigan's unique and complicated business tax has said to have been driving away new start up businesses in our own backyard and pushing these new businesses to our neighboring states. With Michigan's economy crumbling, the Michigan Business and Professional Association, along with its sister association, Michigan Food and Beverage, started a long campaign to eliminate this onerous tax. We worked with Oakland County Executive L. Brooks Patterson and other associations that shared our views, and were able to remove Michigan's stumbling block towards a better business climate. At last, our Single Business Tax has been eliminated and all are hopeful of finding a more palatable business tax that is less costly and burdensome for you and all other small businesses in Michigan.

Now the Governor and the Michigan Legislature have the responsibility to replace this arduous tax with a more business friendly business tax. Unfortunately, as Michigan's 93rd Legislature came to a close in late December of this past year, the Single Business Tax (SBT) replacement had not yet been named. With less than one year to find its replacement before the curtain closes and the current business tax is eliminated on December 31, 2007, there are numerous proposals circulating, with not a one that has been named the front runner.

Governor Granholm introduced her Michigan Business Tax (MBT) proposal, in which she would like to see as the replacement for the onerous SBT. Her proposal will be analyzed by our newly elected legislature that convened this January 10, 2007. Some of varying tax proposals range from taxing the insurance industry an extra .25%, to cutting or eliminating the personal property tax. 

Both Associations strongly believe the new replacement tax should follow the standard principles of taxation, cultivate job retention and creation, encourage new investments in Michigan and provide overall tax relief to Michigan businesses. A more detailed explanation of our guidelines, which was derived from our Board of Directiors and tax experts, is available by clicking the link below. 

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