The Michigan Business Tax: Killed on Friday the 13th?
Well, its Friday the 13th; which makes me think (more than usual) that I can't believe everything I read.
With that said, according to recent activity in the Michigan legislature and the Michigan Chamber of Commerce website, the Michigan House and Senate have voted to repeal the Michigan Business Tax, otherwise known as the MBT. The MBT replaced the ever-popular Single Business Tax or SBT a few years ago and has been under scrutiny ever since.
The MBT currently consists of three parts - a gross receipts tax, an income tax, and a surcharge. The Michigan House and Senate legislation changes the MBT to a flat rate corporate income tax. Apparently the income tax would only apply to C corporations. Partnerships and S corporations would be exempt.
It looks like 2011 is the last year for the MBT.
Stay tuned for more details!
My name is Brian Strahle and I hope you find this blog informative and useful. I am a multistate tax consultant who serves clients all across the U.S. regardless of location. For more info, visit my website: www.leveragestateandlocaltax.com
If you are a CFO, Controller or an accounting firm or law firm professional in need of multistate tax assistance, please read WHY CONTACT ME?.
Connect with me on LinkedIn. Follow me on Twitter. Join the Leverage | SALT LinkedIn Group, connect and contribute with your colleagues!
Because state and local taxes are deceptively simple and endlessly complicated.