Michigan Votes Forum

Introduced in the House on December 3, 2003, to exempt a "qualified start-up business" from paying property tax on real and personal property for five years. A "qualified start-up business" is defined as a firm that has fewer than 25 full-time equivalent employees, has annual sales of less than $1 million, has research and development expenses that make up at least 15-percent of its annual expenses, and is not publicly traded. This does not necessarily apply only to new firms, and the five year exemption is not necessarily the firm's first five years of operation. The personal property tax is a tax on the tools and equipment that businesses use to provide goods and services. It is assessed and levied in the same manner as regular property taxes on real estate

The vote was 79 in favor, 25 opposed and 5 not voting

(House Roll Call 268 at House Journal 34)

Click here to view bill details.

Rep. Jamnick, having reserved the right to explain her protest against the passage of the bill, made the following statement: "Mr. Speaker and members of the House: I voted no on this package of bills (SB 863, 865, 867, 872, 875 and HB 5335, 5341, 5342, 5343, 5345) because they have the potential to continue to reduce revenues in the School Aid Fund as well as State and local governments. It also creates another opportunity where our communities will be competing against one another for business locations."

Rep. Accavitti, having reserved the right to explain his protest against the passage of the bill, made the following statement: "Mr. Speaker and members of the House: I voted no on the companion package of bills to HB 5331 which were deemed to assist 'start-up' businesses (HB 5335, 5341-43, 5345; SB 863, 865, 867, 872, 875) because they will actually amount to very little in terms of tax relief to business but will cost the state treasury up to $15 million at a time when, if revenues are not increased, significant reductions will have to take place in programs to seniors, education and health care. The bills also have the potential of undermining existing economic development programs and incentives and pitting local units against each other in the race to land businesses. Local units will again be forced to choose."

Rep. Law, having reserved the right to explain her nay vote, made the following statement: "Mr. Speaker and members of the House: I voted against HB 5341 due to fiscal concerns for local communities revenue base. Even though communities are not mandated to provide the tax breaks and have the opt out option, I am concerned that this information will not be as readily available to them in their decision making process. Other tax incentive programs may also be adversely impacted and for these reasons I voted no."

At first my opponent Rep. Murphy voted against this bill. I not only think that this bill is right on target, but I also want elimination of the 1987 single business tax because it stops many businesses from coming to Michigan and many others from adding new jobs as they will be taxed for doing so. We need to find a way to replace this tax in another area that doesn't harm business perhaps in the area of new sin taxes.

If these cities and townships do not have new businesses, they will lose more than this tax revenue. The bill is fiscally sound in my book.

Robinsonforstaterepin68th, How about tax breaks for ALL businesses?

Tax breaks for all businesses in Michigan is imperative in order to insure that they do well, can add jobs, and compete with business in other states. It is time thatMichigan became "business friendly". Melissa Sue Robinson Candidate for State Representative (68th) District