Introduced
by
To revise the sales factor apportionment in the formula that determines the base on which a company’s Single Business Tax is levied. This provision relates to how much of a company’s sales are outside vs. within Michigan, which is one of the elements of a firm’s SBT base. The bill would base the apportionment formula 100 percent on sales, eliminating property and payroll factors.
Referred to the Committee on Finance
Reported without amendment
With the recommendation that the substitute (S-1) be adopted and that the bill then pass.
Substitute offered
To replace the previous version of the bill with one that makes it part of a business tax cut proposal offered by Senate Majority Leader Ken Sikkema as an alternative to a <a href="http://www.michiganvotes.org/RollCall.aspx?ID=173410">larger tax cut passed by the House</a>. This is linked to <a href="http://www.michiganvotes.org/2005-SB-633">Senate Bill 633</a>, which would cut the SBT rate from 1.9 percent to 1.84 percent.
The substitute passed by voice vote
Passed in the Senate 23 to 15 (details)
To revise the sales factor apportionment in the formula that determines the base on which a company’s Single Business Tax is levied. This provision relates to how much of a company’s sales are outside vs. within Michigan, which is one of the elements of a firm’s SBT base. The bill would base the apportionment formula 100 percent on sales, eliminating property and payroll factors. This is linked to <a href="http://www.michiganvotes.org/2005-SB-633">Senate Bill 633</a>, which would cut the SBT rate from 1.9 percent to 1.84 percent.
Referred to the Committee on Tax Policy
Amendment offered
by
To reduce but not eliminate the weighting or apportionment of in-state payroll and property in the formula used to calculate a firm's Single Business Tax liability.
The amendment passed by voice vote
Passed in the House 100 to 2 (details)
To revise the “sales factor apportionment” in the formula that determines the base on which a company’s Single Business Tax is levied. This provision relates to how much of a company’s sales are outside vs. within Michigan, which is one of the components of this Value Added Tax (VAT). The bill would reduce from 5 percent to 2.5 percent each the weighting or apportionment that is based on in-state payroll and property, and increase the sales factor from 90 percent to 95 percent.
Received
Amendment offered
by
To phase in the proposed change over two years.
The amendment passed by voice vote
Passed in the House 107 to 1 (details)
To revise the “sales factor apportionment” in the formula that determines the base on which a company’s Single Business Tax is levied. This provision relates to how much of a company’s sales are outside vs. within Michigan, which is one of the components of this Value Added Tax (VAT). In 2008 the bill would reduce from 5 percent to 2.5 percent each the weighting or apportionment that is based on in-state payroll and property, and increase the sales factor from 90 percent to 95 percent. This would be phased in starting in 2006, when the factors would go to 3.75 percent, 3.75 percent, and 92.5 percent, respectively.
Passed in the Senate 35 to 2 (details)
