Business Tax Changes Move Through Senate
A package of bills aimed at clarifying the definition of gross receipts as it impacts the Michigan Business Tax (MBT)—introduced at the request of MRA and other business groups—moved through the Senate this week. SB 1038 is the flagship bill of note to retailers. The bill would remove taxes or surcharges levied on a business from the definition of gross receipts in the Michigan Business Tax. Treasury had recently opined that sales tax collected would fall under this definition.
The package passed along party lines, 21-17. It now faces an uncertain future in the Democrat-controlled House. To no one’s surprise, Treasury opposes the package, claiming it would cost the state hundreds of millions of dollars. MRA will make the case to House members that if this isn’t fixed, the cost to the state resulting from businesses leaving the state would be much greater than the potential revenue losses associated with the fix.
Penny Plan Reintroduced
Rep. Mike Sak (D-Grand Rapids) has introduced HB 5612, a bill requiring a one-cent transaction fee on most transactions over $2 to fund recycling programs in the state. Similar legislation was introduced last session by a Republican legislator, but MRA was able to hold up the legislation over concerns about the costs and burden associated with the plan.
There is a small business exemption in the bill stating that any business that is confident it would do fewer than 2000 transactions or would not collect at least $20.00 under the plan in a month could be exempt from the legislation.
Most other business groups support the bill, seeing it as a way to stem expansion of the onerous MI bottle bill to include water and juice containers.
Drivers License Changes Sent to Governor
After a very difficult week of negotiations on bills seeking to grant drivers licenses to legal immigrants, they finally passed both chambers as the result of compromises. The bills will allow legal immigrants access to licenses, but prevent illegal aliens from receiving them.
The package does not put Michigan in compliance with the federal Real ID law, although elements of that law were used in Michigan’s bills. The absence of the reference to Real ID seemed to make Democrats comfortable enough to go along with the bills.
KEY BILL INTRODUCTIONS:
SB 1014, sponsored by Sen. Nancy Cassis (R-Novi), to exclude certain individuals in definition of unitary business group.
SB 1115, sponsored by Sen. Jason Allen (R-Traverse City), to create a Michigan economic growth authority credit for certain anchor companies.
HB 5673, sponsored by Rep. David Law (R-Commerce Twp), to include N-benzylipiperazine as a schedule 1 controlled substance.
HB 5610, sponsored by Rep. Michael Sak (D-Grand Rapids), to exempt new motor vehicle manufactured in Michigan.
HB 5611, sponsored by Rep. Sak, to provide labeling for sale of cloned meat.
HB 5612, sponsored by Rep. Sak, to impose 1-cent recycling fee on sales transactions and earmark for recycling and waste diversion programs.
HB 5614, sponsored by Rep. Sak, to provide labeling for sale of milk from cloned animals.
HB 5617, sponsored by Rep. Sak, to provide for distribution of certain amount of revenue collected restricted to fund for tourism marketing and promotion.
HB 5626, sponsored by Rep. Steve Bieda (D-Warren), to prohibit certain advertising of numismatic coins and medallions.
HB 5627, sponsored by Rep. Dan Acciavatti (R-Chesterfield), to provide for repeal of surcharge for taxpayers and revision of certain credits as a result of surcharge.
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