ACCELERATE SBT
RATE REDUCTIONS
House Bill 4135
Sponsor: Rep. Nancy Cassis
House Bill 4136
Sponsor: Rep. Jim Howell
House Bill 4137
Sponsor: Rep. Jason Allen
House Bill 4138
Sponsor: Rep. Bruce Patterson
House Bill 4139
Sponsor: Rep. Clark Bisbee
Committee: Tax Policy
Complete to 2-7-01
A SUMMARY OF HOUSE BILLS 4135-4139 AS INTRODUCED 2-6-01
Public Act 115 of 1999 amended the Single Business Tax Act to phase out the SBT by reducing the rate by one-tenth of one percent each year, beginning January 1, 1999. (The rate as of January 1, 2001 is 2 percent.) However, the rate reduction each year is contingent upon there being an ending balance of more than $250 million in the "rainy day" fund at the end of the prior state fiscal year. If the balance falls below that amount, the rate reduction does not take effect in the next year.
The bills would accelerate the SBT phase-out by reducing the rate by two-tenths of one percent on January 1 of each year (subject to the current "rainy day" fund conditions). House Bill 4135 would apply to the first and second years that the conditions were met following December 31, 2001. House Bill 4136 would apply to the third and fourth years. House Bill 4137 would apply to the fifth and sixth years. House Bill 4138 would apply to the seventh and eighth years. House Bill 4139 would apply to the ninth and tenth years. On the tenth January 1 the rate would be reduced to zero.
MCL 208.31 et al.
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This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.