Lawmakers may pass business tax replacement today

A new business tax that cuts taxes for most Michigan businesses might get final passage from lawmakers today.

A House and Senate conference committee will reconvene at 2:30 p.m. with hopes of approving a final version of a lengthy bill that legislative leaders have fine-tuned in the past several days.

If approved, the bill could be sent to both chambers for a final vote today.

“We’re 95% there, “ said Senate Majority Leader Mike Bishop, R-Rochester, a member of the conference committee, which met briefly at 9:45 a.m. and adjourned until this afternoon. “We don’t want to rush to a final product.”

The new tax would replace the Single Business Tax beginning in January. The latest version of the new tax would impose a 4.95% tax on business profits and a 0.8% tax on gross receipts with deductions allowed for purchases of materials and other goods.

Also, the agreement would significantly cut personal property taxes on commercial and industrial equipment, which would mostly benefit manufacturers.

Late revisions in the bill give added tax deductions to contractors and limited liability corporations, which were not in the original agreement announced June 13.

Treasury officials have said the new tax would result in lower taxes for three-fourths of businesses that now pay the SBT.

source:www.freep.com