LANSING – The joint Michigan legislative committee created to develop a replacement tax for the Single Business Tax will hold its first meeting on Tuesday, but the committee’s only action planned for the meeting is to organize itself.
The committee was created to develop a proposal to replace the SBT. State elections officials are reviewing petitions presented last month for a proposal that would speed up the end of the SBT from its currently scheduled dissolution of December 31, 2009, to December 31, 2007.
If the petitions are certified, then the Legislature has 40 days to enact the proposal.
Gov. Jennifer Granholm has proposed the Legislature bring the tax to an end before 2007. She also has called for the Legislature to enact measures to protect tax credits granted companies under the SBT.
Meanwhile, Grand Valley State University President Mark Murray has written a commentary saying that while the state cannot afford a tax increase, in order to stay competitive, the state is collecting the smallest share of personal income in taxes in 30 years and must support essential services if the state expects to attract businesses.
He proposed expanding the sales tax to include some services in the base, and doing so would also allow the state to reduce the sales tax rate from its current 6 percent.
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