Non-Manufacturing Firms Urged
To Prepare For MBT
The state employee, Ron Moffett of the Michigan Economic Development Corp., told the members of the International Warehouse Logistics Association that the new MBT is intended to be "revenue neutral," meaning it is not supposed to result in more business tax revenue collected than the old Single Business Tax. However, he said it won't be clear if that really is the case until after the tax takes effect in January.
Moffett said seven out of 10 companies in
The law will ease the former SBT tax burden on manufacturing companies, but some non-manufacturing industries will clearly pay more, particularly financial institutions and insurance companies, among others. Moffett noted that insurance industry taxes in
In response to a question from an IWLA member, Moffett said he believes the warehouse-based logistics companies will be among the businesses paying the same or less under the new MBT.
Lisa Pohl of the
"Overall, I would think the tax for everyone in this room is probably going to increase," she added.
The new MBT will be enacted Jan. 1, but both Pohl and Moffett said they expect some changes to be made in the law. Moffett said there are already several proposed amendments to the law facing the legislature due to the discovery of "some unintended consequences." One is a trucking industry concern that some of its out-of-state customers may be taxed by
Pohl said the new MBT will be "a field day for accountants and attorneys because there is so much gray," or ambiguity, in the language of the law. She said after the IWLA meeting that many companies in