The Chamber seeks to keep members informed of legislative issues of interest to the business community . . .
Jan. 25, 2006 ~ Job Provider Bill of Rights, a 12-bill package aimed at reducing bureaucratic costs for Michigan businesess and cutting red tape was approved by the State House. The measures will help make it possible for job providers to create jobs and build Michigan's economy. State Rep. John Stakoe introduced a part of the package that allows the treasurer to settle tax disputes under $50,000. This will allow businesses to focus on driving the economy instead of fighting treasury. The Job Provider Bills of Rights seeks to help job providers by creating a stable tax structure and providing greater efficiency when working with the department. The package is aimed at streamlining the tax administrative process, freeing employers from the excessive regulation which costs valuable resources.
Jan. 16, 2006 ~ Metropark funding: Senator Nancy Cassis unveiled legislation to restore funding to Michigan metroparks and other eligible authorities, which would address a consequence of the 2004 acceleration of county property tax payments that led to the loss of funding for parks such as the Huron-Clinton Metropark Authority (HCMA). Because of the tax shift, HCMA has lost $530,000 from its annual budget, which could adversely affect Indian Springs, Stony Creek and Kensington Metroparks among other state metroparks. The first bill requires the state to restore payments to the counties for metroparks and other eligible authorities, including libraries, transit and airports. The second bill calls for the counties to pass these funds on to authorities. Parks and authorities across the state have experienced $1.2 million in lost funding.
In other news ~ Restructure Michigan's tax code: A comprehensive effort to restructure Michigan's tax code and regulatory structure to make Michigan's business climate more competitive with other states has been made by Senate Majority Leader Ken Sikkema and House Speaker Craig DeRoche who presented their "First Steps for '06" plan. The plan calls for a 50 percent tax cut for small businesses that pay the Single Business Tax; prohibiting the Michigan Department of Labor and Economic Growth from pursuing unnecessary regulations; streamlining interaction getween taxpayers and Treasury Department; and deposit over $100 million in surplus revenue into Michigan's Rainy Day Fund rather than increase government spending. In addition, Senator Nancy Cassis introduced SB 957 which lowers the alternative tax rate small businesses pay on the Single Business Tax. The legislation could cut taxes in half for more the 30,000 Michigan businesses.
Dec. 20, 2005 ~ Gov. Jennifer Granholm signed tax cut laws. The new laws will provide a 15 percent tax credit on equipment and other personal property in 2006. The laws will extend tax breaks for Delphi Corp. and visteon Corp. and give a 100 percent personal property tax credit in 2007 and 2008 to businesses that bring jobs into Michigan. The tax package is expected to cut business taxes by about $600 million over four years.
In other news ~ The state Board of Education unanimously approved a new statewide school curriculum standard and referred it to the Legislature for action. "It is important for us to remember that the quality of our economy goes hand in hand with the quality of our education," said State Senator Nancy Cassis. "While Michigan's unemployment remains high overall, there is a labor shortage in the skilled trades. Retraining existing workers and providing new workers with job skills more appropriate to a modern, diversified economy are top priorities."
Dec. 7, 2005 ~ The Job Provider Bill of Rights, a 12-bill package aimed at reducing bureaucratic costs for Michigan businesses and cutting red tape, was approved by the Michigan House, making it possible for job providers to build Michigan's economy and create jobs. Oakland County lawmakers supported the package because it will help revitalize Michigan's economy. The Job Provider Bill of Rights seeks to make the Michigan Department of Treasury a partner, not a problem, for job providers by creating a stable tax structure and providing greater efficiency when working with the department. The package is aimed at streamling the tax administrative process, freeing employers from the excessive regulation which costs valuable resources. Bills in the package:
• Protect taxpayers from retroactive regulations, bulletins and letter rulings issued by the Michigan Department of Treasury;
• Require auditors to inform taxpayers of refund opportunities that are discovered during an audit; and
• Give taxpayers the right to an informal conference if the Department of Treasury issues a refund denial or issues a credit audit.
Dec. 7, 2005 ~ The state Senate passed a $500 million business tax relief package on Tuesday, Dec. 6. The House will vote on the bills Wednesday, Dec. 7. The package is expected to pass. The bills would cut business taxes by $500 million over four years, giving manufacturers a 15 percent credit for taxes they pay on equipment starting Jan. 1, as well as a 100 percent credit in 2007 and 2008 if they bring jobs into Michigan.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 has provisions that are, for the most part, beneficial to creditors of companies that have sought bankruptcy protection. The Act significatly expands the dollar amount of administrative claims, which must be paid either during the case or at the time the debtor confirms its plan of reorganization. This increase will allow suppliers to receive numerous benefits not previously available. The Bankruptcy Act contains numerous provisions affecting cases, requiring customers, suppliers, lenders, debtors, landlords and others to rethink strategies that have previously been routinely employed in bankruptcy cases. The legislation is complex, and new questions on interpretation and application of the law are likely to result in significant litigation over the next several years.
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