Dickinson Wright Attorneys Monitor Michigan Tax Law Changes

<b>Dickinson Wright Attorneys Monitor Michigan Tax Law Changes</b>

January 2005
Attorneys in Dickinson Wright's Taxation practice group are following proposed changes to Michigan’s tax laws that will affect business taxpayers. Significant changes are in the works, both as a result of tax increases proposed as part of Governor Granholm’s current fiscal year budget, and as a result of the proposal to “overhaul” the Michigan single business tax (SBT) going forward. The budget proposal provisions have been characterized as “eliminating subsidies” or “closing loopholes,” but have the potential for reversing long-standing Michigan tax law in certain areas, including the application of sales tax to vending machine food sales, motion picture ticket prices, and trucks, trailers and parts used in interstate transportation, to name a few. These changes potentially impact many businesses subject to the SBT. While the proposals are designed to cut taxes for most businesses and help stimulate the economy and generate new jobs in the State, tax increases are likely for many businesses, including insurance companies, large service providers and businesses that must apportion their business activity among Michigan and other states. No legislation has been introduced at this point. Dickinson Wright attorneys are monitoring these developments on behalf of the Firm's clients who are likely to be impacted by these changes. In the meantime, please contact us with any questions regarding these changes in Michigan tax law. Thomas D. Hammerschmidt Jr. 734-623-1602 or thammerschmidt@dickinsonwright.com James H. Novis 517-487-4713 or jnovis@dickinsonwright.com