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Legislature Passes Single Business Tax Replacement (6.29.07) Weeks of intense negotiation came to fruition last night as the Michigan legislature passed Senate Bill 94 to create the Michigan Business Tax (MBT) and replace the old Single Business Tax (SBT) that was scheduled for repeal on December 31st. The new business tax, like the existing SBT, will be imposed on businesses with annual gross receipts in excess of $350,000. The new structure is composed of a modified gross receipts tax (at a rate of 0.8%) and a business income tax (at a rate of 4.95%). The Department of Treasury estimates that the new tax will replace all $1.9 billion currently brought in by the SBT. The Michigan Association of REALTORS® struck several victories in the creation of this new tax structure to keep taxation on real estate brokerages low. The Governor's earliest proposals brought a 900% tax increase on our industry. But, successful negotiations brought key amendments so that, at worst, we are brought back in line with the rest of the business community. These important policy points included:
The new MBT passed both the Senate and the House with large majorities in each chamber. The bill is on its way to the Governor for her signature and to become law. Given the quarterly reporting requirements of many Michigan businesses at the end of June, it will most likely be signed after July 1st. The Michigan Association of REALTORS® appreciates the hard work of all of the Senators and Representatives that made up the bi-partisan workgroup to draft this "MBT." Please stay tuned to the MAR Web site (http://www.mirealtors.com/) and MAR publications for more details and the latest information on this new form of business tax. |
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Workers have begun construction on two long awaited projects in Shelby Township, Michigan. One is to rebuild the intersection at 24 Mile Road and Van Dyke; the other will be two pedestrian bridges over the M53 freeway. The bridges will connect sidewalks on either side of 21 Mile Road and 22 Mile Road. Walkers and bicyclists will be able to cross over the freeway safely. Currently there is no sidewalk over the freeway and pedestrians have been injured crossing the treacherous road. The 2.7 million bridges are slated for completion in late August. $1.5 million of the cost came from Shelby Township officials; the balance was from a State grant. The 21 Mile bridge will be on the south side of 21 Mile, the 22 Mile Road bridge will be on the north side.