With a final concurrence by the House of Representatives following the Senate’s vote, Michigan Governor Rick Snyder was able to claim victory on one of the major agenda items of administration (and previously a major platform item for his campaign) – eliminating the Michigan Business Tax (MBT) and replacing it with a 6-percent corporate income tax.
The S-5 Substitute for House Bill 4361 passed the Senate Thursday afternoon when Lt. Governor Brian Calley broke a 19-19 tie with his “yes” vote. All 12 Democratic Senators voted “no” and were joined by Senators Brandenburg (R-Harrison Township ), Patrick Colbeck (R-Canton), Dave Hildenbrand (R-Lowell), Joe Hune (R-Hamburg), Rick Jones (R-Grand Ledge), Dave Robertson (R-Grand Blanc), and Tory Rocca (R-Sterling Heights
The legislation first had to make its way out of the Senate Committee on Reforms, Restructuring and Reinventing – a task that appeared to be doomed at many points this week as Capitol insiders predicted a discharge directly to the floor. In fact – the Committee, Chaired by Senator Mark Jansen (R-Gaines Township
The Senate changes in the S-5 substitute restore an Earned Income Tax Credit (EITC) representing 6-percent of the Federal EITC and provide for a buy-back provision for those with existing Brownfield development credits at roughly 90-cents on the dollar. Additionally, the $1 appropriation place-holder was replaced with $1 million for the Department of Treasury’s implementation efforts.
Following the narrow vote on the Senate floor, the measure was returned to the House for concurrence where the rules were suspended and the House concurred in the Senate substitute 56-52. The package of legislation, also including HB 4362, HB 4479, HB 4480, HB 4481, HB 4482, HB 4483 and HB 4484, moves now to the Governor’s desk for signature.