2005 Senate Bill 633 ↩
House Roll Call 623:
To reduce the Single Business Tax rate from 1.9 percent to 1.85 percent in 2009, and restrict the use of tax-reducing alternative gross receipts tax calculations and "excess compensation" credits. The bill is part of an agreement struck between Gov. Jennifer Granholm and Republican legislative leaders to adopt modest business tax cuts and a scaled-down “<a href="http://www.michiganvotes.org/2005-HB-5047">21st Century Jobs Fund</a>." The package would also lower the SBT that businesses pay on their employee health insurance costs beginning in 2009; reduce the alternative SBT tax rate charged to small businesses from 2 percent to 1.9 percent; provide a refundable SBT credit against a portion of the property taxes paid on industrial tools and equipment; reduce but not eliminate the weighting of in-state payroll and property in calculating a firm's SBT liability; and offset these tax cuts by eliminating a number of existing tax credits and deductions. The net reduction in business tax burden over six years would be $472 million, or approximately two-tenths of one percent of state spending over that period. Full details of the deal are described by a Senate Fiscal Agency <a href="http://senate.michigan.gov/sfa/Publications/BudUpdates/EconDevProposal2005.pdf">analysis</a> <i>(pdf)</i>.