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2006 Initiated Legislation 1: Eliminate SBT
Public Act 325 of 2006
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- Introduced in the Senate on August 9, 2006, to eliminate the Single Business Tax as of Dec. 31, 2007. The measure was placed before the legislature through a petition drive organized by Oakland County Executive L. Brooks Patterson. Under the Constitution, if the legislature fails to pass an such an initiated law within 40 days it goes on the ballot for a vote of the people, but if the legislature does pass it with a simple majority, it goes on the books without the need for the governor's approval. In March, Gov. Jennifer Granholm vetoed a regular bill (House Bill 5743) to do the same thing (eliminate the SBT). The SBT provides about five percent of the total amount of state spending, and about 20 percent of the General Fund, the spending over which the legislature has the most discretion. The SBT is one of two major taxes Michigan businesses pay, the other being property taxes on real property and on business tools and equipment ("personal property"). to eliminate the Single Business Tax as of Dec. 31, 2007. The measure was placed before the legislature through a citizen initiative (petition drive). With this simple-majority vote the measure goes into law without the need for the governor's approval. In March, Gov. Jennifer Granholm vetoed a regular bill (House Bill 5743) to eliminate the SBT. The legislature has not passed a law to create a new business tax. Michigan businesses pay around $1.8 billion in SBT, and a similar amount in property taxes on real property and on business tools and equipment ("personal property"). The text of the measure is here.
- Passed 22 to 16 in the Senate on August 9, 2006, to eliminate the Single Business Tax as of Dec. 31, 2007. The measure was placed before the legislature through a citizen initiative (petition drive). With this simple-majority vote the measure goes into law without the need for the governor's approval. In March, Gov. Jennifer Granholm vetoed a regular bill (House Bill 5743) to eliminate the SBT. The legislature has not passed a law to create a new business tax. Michigan businesses pay around $1.8 billion in SBT, and a similar amount in property taxes on real property and on business tools and equipment ("personal property"). The text of the measure is here..
Who Voted "Yes" and Who Voted "No" - Received in the House on August 9, 2006.
- Passed 64 to 36 in the House on August 9, 2006, to eliminate the Single Business Tax as of Dec. 31, 2007. The measure was placed before the legislature through a citizen initiative (petition drive). With this simple-majority vote the measure goes into law without the need for the governor's approval. In March, Gov. Jennifer Granholm vetoed a regular bill (House Bill 5743) to eliminate the SBT. The legislature has not passed a law to create a new business tax. Michigan businesses pay around $1.8 billion in SBT, and a similar amount in property taxes on real property and on business tools and equipment ("personal property"). to eliminate the Single Business Tax as of Dec. 31, 2007. The measure was placed before the legislature through a citizen initiative (petition drive). With this simple-majority vote the measure goes into law without the need for the governor's approval. In March, Gov. Jennifer Granholm vetoed a regular bill (House Bill 5743) to eliminate the SBT. The legislature has not passed a law to create a new business tax. Michigan businesses pay around $1.8 billion in SBT, and a similar amount in property taxes on real property and on business tools and equipment ("personal property"). The text of the measure is here.
Who Voted "Yes" and Who Voted "No" - Allowed to become law without signature by Gov. Jennifer Granholm on August 10, 2006, except that the governor actually has no role in initiated laws. (MichiganVotes has no template to support this unusual event, however.) The Michigan Constitution contains a provision establishing that a proposed statute introduced by citizen inititative become law when the House and Senate pass them, without any action by the governor.
Most Recent Comments
1) Get A clue by Anonymous Citizen on March 7, 2007"Michigan businesses pay around $1.8 billion in SBT,'
Will they lower their prices when this tax goes away? No
Will they pass on to consumers the 2 penny jenny plan. Yes.
The only person that pays tax is the end user.
Do away with this tax and DON'T replace it. Cut government and help business come to this state instead of being "Blown Away".
Reply
Note: The text of this measure appeared only in the House and Senate Journals. Here is that text:
Department of State
July 28, 2006
I, Terri Lynn Land, Secretary of State of the State of Michigan, certify that the attached proposed law appeared on the legislative initiative petition filed with the Secretary of State on May 30, 2006 by Repeal SBT, 124 West Allegan, Suite 800, Lansing, Michigan 48933. I further certify that on July 28, 2006 the Michigan Board of State Canvassers determined that said initiative petition contains “at least the minimum number of valid signatures required under Article 2, Section 9, of the Constitution of the State of Michigan of 1963.” I therefore submit to the Michigan State Legislature said legislative proposal for consideration as provided under Article 2, Section 9, of the Constitution of 1963.
Sincerely,
Terry Lynn Land
Secretary of State
INITIATION OF LEGISLATION
An initiation of legislation to repeal 1975 PA 228, entitled “Single business tax act,” (MCL 208.1 to 208.145); to provide for the collection of taxes due under current law on business activity in this state through December 31, 2007; and to encourage the legislature to adopt a tax that is less burdensome and less costly to employers, and more conducive to job creation and investment.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1. Purpose
Sec. 1. The purpose of this initiated law is to:
(a) Repeal the single business tax on business activity in this state after December 31, 2007; and
(b) Encourage the legislature to adopt a tax that is less burdensome and less costly to employers, more equitable, and more conducive to job creation and investment.
2. Tax at Zero-Rate After Effective Date
Sec. 2. The department of treasury shall prorate the liability for the tax imposed under the single business tax act as necessary to impose the equivalent of a tax at the rate of zero on business activity after December 31, 2007.
3. Affirmation of Existing Tax Liabilities
Sec. 3. Except as specifically provided, this initiated law shall not affect the administration, allocation, or apportionment of the tax; payments to counties; nor any appropriation. The obligation of taxpayers and the state for taxes levied or collected on business activity on or before December 31, 2007 is affirmed.
4. Severability
Sec. 4. This act is declared to be severable.
5. Repeal
Enacting section 1. The single business tax act, 1975 PA 228, MCL 208.1 to 208.145, is repealed effective for tax years that begin after December 31, 2007.
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"Voodoo economics as practiced in Washington, now here in Michigan brought to you by the local Republican morons"
Your so called voodoo economics is working everywhere it is used. Maybe we should get on board.
Answer me a question lib boy...If as you say the economy will grow if you take more of my money in taxes why is it that when you want to discourage something and slow it down the first thing you do is raise taxes?
Kinda like the abortion is good but the death penalty is bad thing ain't it?
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