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!
Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect." For more info, visit his website: www.leveragestateandlocaltax.com
You can reach Brian at email@example.com.
Because state and local taxes are deceptively simple and endlessly complicated.