HB 4779, if enacted, would create a $.06 per mile tax on all commercial vehicles. The tax will be collected quarterly by filing a form and remitting payment to the Michigan Department of Treasury.
HB 4215 increases the threshold in which a small taxpayer can benefit from a full exemption of personal property taxes. Currently, if a business has less than $80,000 in personal property, they can file for a full exemption from the personal property tax.
HB 4214 would allow a taxpayer eligible for the small taxpayer personal property tax exemption (a business with less than $80,000 in personal property) to go before the July Board of Review in addition to the March Board of Review if they missed the February deadline for submitting the exemption. The bill also provides for forgiveness if a taxpayer eligible for the small taxpayer exemption forgets to file the exemption in the first year of being operational. If a taxpayer forgets to file the exemption the first year they were eligible, they can petition the March or July Board of Review in the subsequent year to receive the exemption retroactively.
HB 4781 will increase taxes on ALL Michigan employers.
Corporate Income Tax Increase: The proposed legislation would increase Michigan’s 6% Corporate Income Tax to 8.5% starting in tax year 2020. Increasing the Corporate Income Tax by 42% would put Michigan’s rate near the Country’s highest joining States like Illinois and California.
New Entity Level Tax on Passthroughs: HB 4781 would apply a new 8.5% tax on passthrough income. Currently, passthrough owners pay 4.25% on business income through their personal income tax. This proposal doubles the rate passthrough owners would pay starting in tax year 2020.
It’s hard to believe that many parts of Michigan do not have access to broadband internet services. Unless you live in an area without access to broadband you would not know how wide spread the problem is. In the past, legislators have introduced bills to allow for local units of government to offer broadband services with revenues collected from a special millage.
Nothing is more frustrating for Michigan’s businesses than when our state’s tax policy makes them uncompetitive within their industry; that is exactly the case for aircraft repair facilities.