LANSING – The Senate and House Committees will hold a dozen hearings, including eight outside of Lansing, to get a critique from businesses on Gov. Jennifer Granholm’s proposed restructuring of the single business tax.

Republicans seek to develop a response to the Democrats? plan. Legislative leaders said additional hearings will be held separately on another aspect of the $1.2 billion proposal providing cuts in business personal property taxes.

The Senate Finance and House Tax Policy committees have already heard presentations by Treasurer Jay Rising on the proposal, which the administration says will change the SBT to better attract business investment in Michigan. It cuts taxes for about 75 percent of businesses that pay the SBT, including most manufacturers, but raises taxes, sometimes dramatically, on insurance companies, financial institutions and others.

The Michigan Chamber of Commerce and the National Federation of Independent Business, which have been most critical of the proposal, will lead off testimony when the hearings open at 8:30 a.m. Wednesday. Testimony is also scheduled by the Small Business Association of Michigan, which has issued some favorable comments on the proposal, calling it a starting point for reform.

In a statement, House Speaker Craig DeRoche (R-Novi) said, “Michigan’s employers will be directly affected by this legislation and deserve the opportunity to be heard before any tax plan is approved. We must be certain that this tax shift does not put Lansing in the position of creating winners and losers in the state economy.”

Senate Majority Leader Ken Sikkema (R-Wyoming) added, “It is fundamental that we address our tax policy if we are going to get Michigan’s economy moving in a positive direction again. These committee meetings will allow us to hear from all sectors of the economy on how this plan would impact them. We need that kind of input to help craft a business tax structure that serves as a welcome sign to job providers.”

“The real test of the governor’s plan is whether or not it will stimulate job creation in Michigan,” Rep. Fulton Sheen (R-Plainwell), chair of the Tax Policy Committee, said. “There is a real concern that this tax plan fails that test.”

After the Wednesday hearing, other hearings on the bills (SB 295, SB 296, HB 4476 and HB 4477) will be held:

Monday, April 25 at 1 p.m. in Lansing.

Monday, May 2 at 1 p.m. in Grand Rapids.

Monday, May 9 at 1 p.m. in Traverse City.

Thursday, May 12 at 3:30 p.m. in Gaylord.

Friday, May 13 at 9:30 a.m. in Sault Ste. Marie.

Friday, May 13 at 2:30 p.m. in Marquette.

Monday, May 16 at 1 p.m. in Kalamazoo.

Thursday, May 19 at 3 p.m. in Saginaw.

Monday, May 23 at 1 p.m. in Oakland County.

Wednesday, May 25 at 8:30 a.m. in Lansing.

Wednesday, June 1 at 8:30 a.m. in Lansing.

Sikkema spokesperson Ari Adler said the personal property tax cut will be the subject of later, and likely more limited, schedule of hearings, saying “they are two separate issues and we’re dealing with them in that way.”

Adler said the GOP legislators are working on alternatives to the Granholm plan, with details depending on what the committees hear. He noted there are some parts legislators like, such as the tax cuts, but other parts have already raised concerns.

“If we indeed find parts that don’t work, we would come to table with our own alternative,” he said.

Treasury spokesperson Terry Stanton said both the SBT changes and the property tax cut are part of a complete package that provides fair tax relief to create and retain jobs and should be considered together. He also stressed that the property tax change, though it affects the Proposal A constitutional amendment, can be done by simple legislative action.

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