2009 House Bill 5384

Create legislative “vehicle” for business tax hike

Introduced in the House

Sept. 17, 2009

Introduced by Rep. George Cushingberry (D-8)

To make non-substantive wording changes to the Michigan Business Tax act. This is a parliamentary device sometimes used for quickly adopting a tax increase in the event the votes are found for one as part of the process of closing a gap between the amount of state spending desired by most legislators, and the amount of revenue expected in the absence of a tax hike.

Referred to the Committee on Tax Policy

Oct. 6, 2009

Reported without amendment

With the recommendation that the amendments be adopted and that the bill then pass.

Amendment offered

Tie-bar the bill to House Bills 4043, 4121, 4150 and 4080 meaning this bill cannot become law unless those ones do also. They would place the state’s “check register” on-line, and end post-retirement health coverage for legislators.

The amendment failed by voice vote

Amendment offered by Rep. Brian Calley (R-87)

To eliminate the caps on the maximum share of a business’s income that the proprietor or shareholder of a small business can receive from the firm in one year without removing the firms eligibility for a lower small business tax rate under the Michigan Business Tax.

The amendment failed by voice vote

Amendment offered by Rep. Phil Pavlov (R-81)

The amendment failed by voice vote

Amendment offered by Rep. Joseph Haveman (R-90)

The amendment failed by voice vote

Amendment offered by Rep. Gail Haines (R-43)

To tie-bar the bill to House Bills 4898, 4151, 4902, 4909, 4988 and 4908, meaning this bill cannot become law unless those ones do also. They would establish expedited environmental permit application processes, eenchmark state environmental regulation administration, regulate certain environmental-related plant inspections, limit state regulation promulgation authority, and require periodic review of state regulations.

The amendment failed by voice vote

Amendment offered by Rep. Joseph Haveman (R-90)

To tie-bar the bill to House Bill 5480, meaning this bill cannot become law unless that one does also. HB 5480 would eliminate a scheduled increase in the <a href="http://www.michiganvotes.org/2006-SB-453">earned income tax credit</a>.

The amendment failed by voice vote

Amendment offered by Rep. Bettie Cook Scott (D-3)

To tie-bar the bill to House Bill 4165, meaning this bill cannot become law unless that one does also. HB 4165 would phase out the 21.99 percent Michigan Business Tax surcharge imposed on businesses as part of a $1.4 billion tax hike passed in 2007 to avoid government spending reductions.

The amendment failed by voice vote

Amendment offered by Rep. David Agema (R-74)

To tie-bar the bill to House Bill 4080, meaning this bill cannot become law unless that one does also. HB 4080 would require governments and their contractors to verify employee citizenship.

The amendment failed by voice vote

Amendment offered by Rep. Kate Ebli (D-56)

To authorize a credit against the Michigan Business Tax for one (small) part of the extra tax a doctor's practice would have to pay because of the "doctors tax" imposed by House Bill 5386.

The amendment passed by voice vote

Amendment offered by Rep. Tom McMillin (R-45)

To require the Department of Energy, Labor and Economic Growth to perform and post on the internet an analysis of the impact the bill will have on employment in the state. Note: The amendment probably refers to the content that was expected for this bill, which would have repealed a number of Michigan Business tax credits and exemptions. Those provisions may appear in another bill as part of a Democratic tax increase package.

The amendment failed by voice vote

Amendment offered by Rep. Tom McMillin (R-45)

To prohibit the bill from going into effect unless Michigan's unemployment rate falls below that of Mississippi. Note: In a press conference earlier in the day of this vote Gov. Jennifer Granholm made unflattering remarks about Mississippi (9.5 percent unemployment rate in August, 2009) compared to Michigan (14.7 percent unemployment rate). Also, the amendment probably refers to the content that was expected for this bill, which would have repealed a number of Michigan Business Tax credits and exemptions. Those provisions may appear in another bill as part of a Democratic tax increase package.

The amendment failed by voice vote

Passed in the House 57 to 52 (details)

To authorize a credit against the Michigan Business Tax for the amount of extra tax a doctor's practice would have to pay because the "doctors tax" imposed by House Bill 5386 would add to the gross receipts base on which the main part of the MBT is levied. Specifically, the bill would exempt additional tax due to the amount of income (and expense) attributable to injected or intravenous drugs administered to patients.

Received in the Senate

Oct. 8, 2009

Referred to the Committee on Finance