Is there Tax Relief in our Future?
Does your company make payments to subcontractors? Are those trucks classified as 484 prefix under the NAICS transportation codes? If so, you may be eligible to deduct those payments to subcontractors in the Michigan Business Tax under a bill introduced by Senator Nancy Cassis (R) Novi. This deduction is not available to companies which qualify for the credit under Section 417 of the Michigan Business Tax. If your company has gross receipts which exceed $20 million annually, and adjusted business income minus a loss adjustment that exceeds $1.3 million as adjusted annually for inflation, you may be very interested in the passage of SB 1222.
SB 1222 amends the Michigan Business Tax to for anyone who makes payments to subcontractors to transport freight by motor vehicles under a contract specific to that freight. That bill has passed the Senate and now rests in the House Commerce Committee, chaired by Representative Robert Jones (D) Kalamazoo. As the fall elections approach, and campaigning becomes the focus, it is important to encourage
both Chairman Jones and House Speaker Andy Dillon to hold a hearing and move this bill prior to the summer recess.
This is not the only bill before the legislature which accomplishes this task. Representative Marc Corriveau (D) Northville, introduced HB 4481 which was assigned to the House Tax Policy Committee were it still resides. That committee is chaired by Representative Kate Ebli (D) Monroe.
Treasury estimates that the financial impact of the deduction is only $7 million so we will not see a strong fiscal argument against these bills. The key to our success is to encourage action this spring, before the election campaign cycle kicks in. Please take a moment and contact the following legislators:
Representative Robert Jones (D)Detroit
Chair, House Commerce Committee.
(517) 373-1785 robertjones@house.mi.gov.
Ask him to schedule a hearing on SB 1222.
Representative Kate Ebli, (D)Monroe
Chair, House Tax Policy Committee
(517) 373-2617 KateEbli@house.mi.gov.
Ask her to schedule a hearing on HB 4481.
Representative Andy Dillon, (D) Redford Twp.
Speaker of the House
(517) 373-0857 andydillon@house.mi.gov.
Ask the Speaker to instruct the committee chairs to take up these bills.
The MMA is working closely with the lobbyist representing the trucking industry to help get one of these bills passed. A critical part of our success is tied to legislators hearing from their constituents that this bill is important. The more they hear from YOU, the better our chances of success. Please take a moment and write, email or make a calls to each of these individuals.
It’s Baaaaack!! Governor Granholm proposes new tax
package including expanding sales
Despite a resounding and embarrassing defeat several years ago when the legislature first passed then repealed a sales tax on services, Governor Granholm has dusted off that idea as a way to balance the budget for 2010. Her proposal to reduce the sales tax to 5.5% and impose.........
Click here to read the full article
The Economy...Things are getting better....Aren’t they?
Our Democratic political leaders tell us things are getting better, the recession is over and prosperity lies directly ahead. Our Republican leaders point to even higher unemployment, uncontrolled government spending, failed economic incentives and claim things are going to get worse.........
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MMA Michigan Legislative Watch
List
The Michigan Movers Association is monitoring
several bills for the members of the Association. If a MMA member
would like a particular bill placed on the watch list, or would
like additional information concerning specific legislation, e-mail
the Executive Director Donn Eurich at
donne@eurich.com.
Legislative Watch
Michigan Public Service Commission
Information
The
Michigan Movers Association is a non-profit association that represents
movers and service providers. Our goal is to foster, develop and
promote the highest standards of conduct and service to the public
and to members engaged in the transportation and/or the storage
of property. The MMA is committed to bringing together organizations
that provide services to our industry with our member moving companies.
We believe membership in MMA is enhanced if our members know they
can find a full range of service providers through our member network,
are kept apprised of moving innovations, and understand regulatory
issues that impact the moving industry in Michigan. 
