The Michigan Business Tax: Killed on Friday the 13th?
by AccountingWeb on
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!