Governor Rick Snyder has signed the tax bill that removes the Michigan Business Tax. The legislation cuts overall business taxes by about $1 billion starting January 1st. It replaces the Michigan Business Tax with a 6% income tax on corporations with shareholders. Some of those companies will pay more, but most companies won’t pay the tax. Those companies and business owners will pay a 4.35% tax on income they earn. This new structure is now a simplified and understandable tax and fair on all businesses across Michigan. Michigan also moves from the bottom 10 (business) tax unfriendly states to one of the Top 20 (business) tax friendly states.
Removing the MBT tax and replacing it with a simple and understandable tax was a top priority of the Northern Michigan Regional Chamber Alliance. We applaud the legislators and Governor for taking action and removing this unfair and burdensome tax on businesses.