Michigan Business Tax
Brandt Coultas
April 13, 2007
Official Policy
April 10, 2007
The Ann Arbor Area Chamber of Commerce believes that a
replacement business tax to Michigan’s Single Business Tax needs to
be guided by the following principles:
- Simple
- Broad-based
- Not be an economic disincentive to business
The Chamber supports replacing the single business tax revenue
through a new business tax. We do not support raising taxes to
bring in more revenue than what is currently brought in by the
Single Business Tax.
The Chamber strongly recommends the Legislature adopt a simple
form of business income tax or gross receipts tax. Like the
existing Single Business Tax, the current proposals will result in
a complicated business tax that is difficult to use. Therefore, the
Chamber is opposed to all of the current SBT replacement proposals.
It is critical to the economic growth of our state that Michigan’s
tax structure be easy to use and compare favorably to tax
structures implemented in other states.
In addition, the Ann Arbor Area Chamber of Commerce does not
support a two (2) percent excise tax on services as proposed. The
current proposal, combined with a business tax, would bring in more
revenue than we support. A tax on services would be complicated and
costly to administer. The Chamber does not support a tax on
business to business commerce.
