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Hey, we have a Michigan business tax on the table

Andrew Norton

Finally. State lawmakers have a new tax on the table that replaces the SBT which expires December 31, 2007. Lawmakers had to have something put together by July 1 in order for it to take effect for the new fiscal year which begins October 1.

Right now it looks like there will be a tax of just under .8% on gross profits minus purchases of tangible property (anything other than real estate or money - furniture would be tangible property) and a tax on profits just under 5%.

I can live with this. There are a lot more details to work out, but at first glance it does not appear that businesses (like ours, for example) will be hit too hard.

As a business owner, Katherine LaMont, was quoted as saying, "The devil's going to be in the details."

It always is. :)

For more information read the article at the Detroit Free Press.