The Public Affairs Team is working closely with the Small Business Advisory Council to develop and promote the Detroit Regional Chamber’s small business legislative agenda. The Council provides input for an agenda that is updated quarterly. The following are examples of legislative issues the Public Affairs Team and the Council have worked on:
Small Business Tax Cut
A personal property tax cut for small business to lessen the burden of this onerous tax. The legislation will help small businesses hire and retain workers. Reducing the personal property tax is a top priority for the Chamber. Staff has testified in support of bills that would reduce PPT in Lansing.
Sales Tax Collection Reform
Gov. Granholm signed legislation implementing the Streamlined Sales Tax Project (SSTP). The SSTP is a national effort that simplifies and modernizes administration of the sales and use tax that will help ensure out-of-state businesses are treated the same as Michigan companies. The Chamber participated in a business coalition to draft the legislation and supported the bills.
Small Business Research and Development Tax Credit
Gov. Granholm recently signed legislation giving start-up small businesses an SBT tax credit if they are participating in research and development. The Chamber supported the legislation.
Defeat of the Estate Tax Proposal
Gov. Granholm proposed decoupling Michigan’s estate tax from its federal counterpart to help close the state’s budget deficit. This would effectively raise taxes on family-owned small businesses that were promised they would avoid the “death tax” after 2005. The Chamber opposed the proposal and encouraged lawmakers to make spending cuts first before raising taxes. Passage of this legislation appears very unlikely.
Expand Tool-and-Die Renaissance Zones Passes
The Michigan House recently passed legislation expanding tool-and-die Renaissance Zones. Currently, tool-and-die businesses that own their equipment can qualify for a tax credit depending on their businesses location. The measure allows companies that lease their equipment to also be eligible for the tax credit. The Chamber is supporting the legislation.