Winners and Losers
The House Fiscal Agency says manufacturers will be the big
winners under the new tax law because they will eliminate
“hundreds of millions” in tax liability. Losers will include
high-profit Michigan companies with relatively few employees and
limited tax liability.
It is estimated that out-of-state firms doing
business in Michigan could see taxes collectively increase by as
much as $190 million. A tax analyst for the Michigan Chamber of
Commerce questioned whether some of the provisions that shift
tax liability to out-of-state firms would stand up to scrutiny
if challenged in federal court.
Tax Breaks for
Commercial and Industrial Property
The Michigan Business Tax Act also offers tax credits and
exemptions for commercial and industrial property.
It provides a refundable credit equal to the
following:
-
35% of industrial personal property taxes
levied after December 31, 2007
-
23% of utility property taxes levied on
telephone property for the 2008 tax year
-
10% of utility property taxes levied on
natural gas pipelines in subsequent years
The new law amends the Revised School Code to
exempt industrial personal property from the 18 school operating
mills and commercial personal property from 12 of the 18 school
operating mills. It also amends the State Education Tax Act to
exempt industrial personal property from the 6 mill state
education tax.
