Michigan Senator David Hildenbrand to Introduce Senate Bill 1 to Repeal the Michigan Business Tax
The repeal would be immediate after it passes the Legislature and is signed by the Governor. Senator Hildenbrand said he hopes the process moves quickly. The bill is Senate Bill 0001, traditionally symbolizing the Senate's top priority. For the 2009-10 session, SB 0001 was a phase-out of the MBT sponsored by Senator Mark Jansen. Both Senator Hildenbrand from lowell and Senator Jansen from Gaines Township hail from the Grand Rapids area.
The Grand Rapids Chamber of Commerce has long been opposed to the Michigan Business Tax as well as the Single Business Tax. They officially support a tax on gross receipts.
Senator Hildenbrand said "We want to declare war on the Michigan Business Tax and put it behind us so we can create jobs in Michigan" Hildenbrand acknowledged that his bill will blow about a $2.2 billion hole in the state's budget which already is $1.8 billion in the red. However, he said the Senate will be working on a new business tax structure more favorable to job creators.
Governor Rick Snyder has proposed a flat, 6-percent corporate income tax and Hildenbrand and other lawmakers are awaiting details. He said he likes the concept of a lower rate and broad base.
It appears the Michigan Business Tax is dead, the only question is when and what will the replacement look like. We'll know more after the Governor's State of the State message tonight and the details to come next month when the Governor's budget proposal is presented to the legislature.