https://www.americancityandcounty.com/wp-content/themes/acc_child/assets/images/logo/footer-logo.png
  • Home
  • Co-op Solutions
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcast
  • Resources
    • Back
    • Resources
    • Webinars
    • White Papers
    • Events
    • How to Contribute
    • Municipal Cost Index – Archive
    • Equipment Watch Page
    • American City & County Awards
  • Magazine
    • Back
    • Digital Editions
    • Reprints & Reuse
    • Advertise
  • About Us
    • Back
    • About Us
    • Contact Us
    • Privacy Statement
    • Terms of Service
American City and County
  • NEWSLETTER
  • Home
  • Co-op Solutions
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcasts
  • Resources
    • Back
    • Webinars
    • White Papers
    • Events
    • How to Contribute
    • American City & County Awards
    • Municipal Cost Index
    • Equipment Watch Page
  • Magazine
    • Back
    • Digital Editions
    • Reprints & Reuse
    • Subscribe to GovPro
    • Manage GovPro Subscription
    • Advertise
  • About Us
    • Back
    • About Us
    • Contact Us
    • Cookie Policy
    • Privacy Stament
    • Terms of Service
  • newsletter
  • Administration
  • Economy & Finance
  • Procurement
  • Public Safety
  • Public Works & Utilities
  • Smart Cities & Technology
acc.com

Economy


Michigan passes tax reforms

Michigan passes tax reforms

Michigan has simplified its tax structure in an effort to improve the state's economic competitiveness.
  • Written by American City & County Administrator
  • 27th May 2011

Michigan has simplified its tax structure in an effort to improve the state’s economic competitiveness. A set of new laws eliminates the Michigan Business Tax, simplifies the tax code, and reforms the way the state taxes retired residents.

On Wednesday, Gov. Rick Snyder signed the eight-bill package. “The current tax system is riddled with inequities that are hostile to job growth,” Snyder said in a statement. “Eliminating these longstanding barriers will level the playing field for taxpayers, encourage entrepreneurship and spur more investment in Michigan. Working in conjunction with other reforms, such as a balanced state budget and refocused economic development strategies, the overhaul of our tax structure lets job providers nationwide know that Michigan is the place to be.”

Changes include:

• The Michigan Business Tax is replaced by a 6 percent Corporate Income Tax. The corporate tax applies only to companies that file as “C” corporations — typically, those that issue stock — and means that nearly 100,000 businesses no longer have to file returns.
• Numerous credits, deductions and exemptions are eliminated.
• The income tax rate is frozen at 4.35 percent until Jan. 1, 2013, when it is lowered to 4.25 percent.
• A three-tiered system determines whether retirement income is taxed. People born before 1946 will continue to receive the current retirement income exemptions, as well as the personal exemption, Social Security exemption and the exemption for dividends, interest and capital gains.
• Military pensions continue to be exempt.
• The Earned Income Tax Credit is retained at a rate of 6 percent of the federal credit.
• The Michigan Business Tax is repealed, but firms wishing to take advantage of previously issued certificated credits may choose to continue paying the tax until their credits are exhausted.
• Public pensions are subject to state taxes as of Jan. 1, 2012.

The new laws take effect Jan. 1, 2012. Read Snyder’s full press release on the tax reform laws.

Related Stories

  • Michigan law clears the state’s economy for take off
  • Kansas reforms workers’ comp law
Tags: Administration Economy

Related


  • Promoting municipal employees’ volunteer efforts
    Research shows when companies support employee participation in volunteer activities, employees’ pride in the company increases, as well as employee engagement, performance, commitment and job satisfaction.
  • Signs begging for change
    The 21 neediest American cities in 2021
    Every city has its share of economic issues, but economic disadvantages affects some cities more than others. Is your city among the neediest cities in the U.S.?
  • Colorado county refuses to enforce state orders as COVID-19 level increases
    Weld County, Colo., commissioners recently reiterated that they wouldn’t be enforcing state-issued pandemic-related mandates, even after the state deemed the county to be at higher risk in the pandemic. Colorado Department of Public Health and Environment (CDPHE) moved Weld County to “Level Red” on its COVID-19 dial, which provides a framework of COVID-19-related guidance to […]
  • Minneapolis cuts millions from police budget
    The Minneapolis City Council approved a budget that will move $8 million in police department funding to mental health and violence prevention programs. The plan was unanimously approved on Dec. 10, according to The Washington Post. “Thanks and congratulations to everyone who advocated for these important investments to make our city safer and more just,” […]

Leave a comment Cancel reply

-or-

Log in with your American City and County account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Will digital transformation of city procurement hold up beyond the pandemic?
  • Biden cabinet picks poised to bring municipal experience to national level
  • How 2020 accelerated government reliance on new sources of economic data analytics
  • How Philadelphia is aiming for zero waste

White papers


How a unified HR system helps one public safety organization manage crews, payroll, and more in a single platform

7th January 2021

Your Roadmap to COVID-19 Funding

18th December 2020

The One Where Everyone Wins: A Mutually Beneficial Contracting Method

10th December 2020
view all

Events


PODCAST


Young Leaders Episode 4 – Cyril Jefferson – City Councilman, High Point, North Carolina

13th October 2020

Young Leaders Episode 3 – Shannon Hardin – City Council President, Columbus, Ohio

27th July 2020

Young Leaders Episode 2 – Christian Williams – Development Services Planner, Goodyear, Ariz.

1st July 2020
view all

Twitter


AmerCityCounty

The latest episode The Young Leaders Podcast focuses on Cyril Jefferson. Cyril is the youngest African American to… twitter.com/i/web/status/1…

27th October 2020
AmerCityCounty

Hillsboro, Oregon is pioneering a new #renewableenergy generation technology through a partnership with… twitter.com/i/web/status/1…

27th October 2020
AmerCityCounty

The impact of the #COVID19 pandemic on #telework was swift and profound. Now, the big question is whether – and to… twitter.com/i/web/status/1…

26th October 2020
AmerCityCounty

Get ready for the can't-miss webinar on how to kickstart your efficiency improvement plan with Luke Anderson of… twitter.com/i/web/status/1…

26th October 2020
AmerCityCounty

Among all states headed into the 2020 general election, which ones have voting populations that are the most demogr… twitter.com/i/web/status/1…

26th October 2020
AmerCityCounty

We want to hear from you! Share your thoughts in our readership survey to help us shape future content so that we c… twitter.com/i/web/status/1…

23rd October 2020
AmerCityCounty

See how cities different approaches to distribute masks in their communities >> spr.ly/6010GAPLa

23rd October 2020
AmerCityCounty

While #facialrecognition is a powerful tool that can improve law enforcement efficiency, that doesn’t necessarily t… twitter.com/i/web/status/1…

23rd October 2020

Newsletters

Sign up for American City & County’s newsletters to receive regular news and information updates about local governments.

Resale Insights Dashboard

The Resale Insights Dashboard provides model-level data for the entire used equipment market to help you save time and money.

Municipal Cost Index

Updated monthly since 1978, our exclusive Municipal Cost Index shows the effects of inflation on the cost of providing municipal services

Media Kit and Advertising

Want to reach our digital audience? Learn more here.

DISCOVER MORE FROM INFORMA TECH

  • IWCE’s Urgent Communications
  • IWCE Expo

WORKING WITH US

  • About Us
  • Contact Us

FOLLOW American City and County ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookies Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X