Historic Michigan Single Business Tax Revenue
Historic Michigan/Single Business Tax Revenue: 1976 to Present
* 1988 through present excludes Single Business Tax collections paid by insurance companies.
|Fiscal Year||Revenue Yield
|Public Act||Change Caused by Act|
|1975||A||PA 228||Single Business Tax established at 2.35 percent replacing eight previous taxes including a corporate and financial institutions income tax, an annual corporation franchise fee, the business portion of the intangibles tax, the property tax on inventories, and various privilege taxes on savings and loans and domestic insurance companies.|
|1991||1,698.4||B||PA 77||Changed for tax years 1991 and 1992, apportionment of tax base so that sales account for 40 percent, and property and payroll account for 30 percent each; changed, for tax years after 1992, apportionment of tax base so that sales account for 50 percent, and property and payroll account for 25 percent each; modified capital acquisition deduction (CAD) to permit deduction of all capital expenditures, including depreciable personal property regardless of location; increased gross receipts filing exemption to $60,000 for tax year 1991 and $100,000 for subsequent years.|
|1992||1,580.5||C||PA 98||Reduced, effective with tax year 1992, the small business tax alternative to 3 percent.|
|Reduced the rate of the alternatives profits tax from 3 percent to 2 percent of adjusted business income.
Increased the gross receipts filing threshold to $250,000 for tax years beginning after December 31, 1994.
Reduced tax rate to 2.3 percent effective October 1, 1994.
|1995||2,216.1||E||PAs 282 & 283||Changed for tax years 1997 and 1998, apportionment of tax base so that sales account for 80 percent, and property and payroll account for 10 percent each; changed for tax years after 1999, apportionment of tax base so that sales account for 90 percent, and property and payroll account for 5 percent each.|
|1999||2,421.0||F||PA 117||Beginning January 1, 1999, the SBT rate is reduced by 0.1% per year until the tax is eliminated. The Insurance Tax rate is reduced proportionately to the SBT rate. The CAD was replaced with an investment tax credit.|
|2002||2,052.2||PA 531||Halted phase-down in SBT rate. Provided for repeal of SBT in years after 2009.|
|2005||1,937.1||G||Legislative enactment of petition-initiated legislation||Legislative enactment of petition-initiated legislation to repeal tax effective for tax years beginning after December 31, 2007.|
|2007||1,869.0||H||PA 36||Michigan Business Tax Act, consisting of an income tax (4.95% rate) and a modified gross receipts tax (0.8% rate), enacted to replace SBT as the primary business privilege tax in the state effective January 1, 2008.|
|Source: Michigan Department of Treasury.|