Yesterday, the Michigan legislature passed 2 pieces of bipartisan tax related relief that was included in the Michigan Chamber’s Economic Recovery Agenda.
First, was HB 5761 and HB 5810 which will provide for a penalty and interest free extension of the summer 2020 property tax levy. Sometimes being the largest annual expense for a business, the summer property tax bill will be an obligation that some taxpayers simply will not be able to meet. Due to COVID-19 shutdowns many businesses have earned no revenue and will simply not be able to pay their property taxes. The ability to pay summer property tax bills was identified as a problem several months ago by the Michigan Chamber. The bill sponsor, Representative Jim Lower (District 70), worked tirelessly with the Michigan Chamber to refine a solution he devised that would help impacted businesses and individuals while keeping local government revenues whole. Representative Lower’s leadership was a major factor in getting this legislation across the finish line.
Second, SB 935, SB 936 and SB 937 allow businesses to pay July and August’s sales, use and withholding taxes over an extended period of time. While accelerated filers have been excluded from similar relief provided by the Department of Treasury in the past, this legislation includes them. What about bill sponsor here? Do we need to add Vanderwall, Runestad and Daley?
Cash flow and liquidity will be the biggest issues facing businesses as they reopen, and these two bill packages help to resolve that. These tax deferral policies should be considered a hand up, not a handout to businesses who find themselves in an extremely difficult position.
The bills are on the way to the Governor who will hopefully sign both packages to give businesses a little more breathing room as they look to reopen.
For more information on these bill packages please contact Dan Papineau at email@example.com