LANSING-Yesterday State Senator Glenn S. Anderson took an important step to improve Michigan’s business and economic climate by voting to pass legislation to reform the Michigan Business Tax (MBT).

“Last year I voted against imposing the surcharge and from day one I have heard the concerns from small and medium-sized business owners who are struggling to stay afloat. These bills will strengthen our ability to keep and create jobs right here in Michigan,” said Senator Anderson. “The legislation passed yesterday creates a much more equitable and competitive tax system to help rebuild Michigan’s economy and support the creation of more jobs.”

Senate Bill 1242 will phase out the Michigan Business Tax Surcharge over the next three years. The surcharge, which is currently levied at 21.99%, will be reduced by a third each year and finally eliminated in its entirety in 2011.

Senate Bill 1038 removes the sales tax, among other taxes that businesses are mandated to collect from customers, from being included in the gross receipts tax base that is used in calculating a business’s tax liability under the Michigan Business Tax. By removing these collected taxes from the gross receipts tax base, this bill eliminates what is essentially a “tax on taxes.”

“These bills embody the bipartisan, common sense approach that Michigan both needs and deserves,” said Senator Anderson. “Returning Michigan to its full economic potential requires that we all come together to work toward this common goal. I will continue to do everything in my power in order to accomplish that.”

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