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5 Bills Signed or Vetoed in Lansing and How They Impact Region’s Businesses

With more than 300 bills signed into law or vetoed at the close of 2018, several key state laws will take effect this year, directly impacting the business community across the state and region. In case you missed it, take a look at five key bills and what they mean for Southeast Michigan, including business incentives, taxes and environmental cleanup.

Tax on Pass-Through Businesses
Legislation permitting businesses to elect into a pass-through entity tax which would shift state tax liabilities from individuals to the business entity (SB 1170) was unsigned. This bill would have allowed for full deduction of state and local taxes at the federal level. It is part of a four-bill business tax code package.

Special Assessments

House Bills 5325 and 5720 were both unsigned and would have allowed shopping districts, business improvement districts and business improvement zones in municipalities to levy special assessments on property owners to finance improvements in those commercial corridors.

Regulatory Impact

House Bill 4205, signed into law, prevents future administrations from imposing state regulations that are more stringent than existing federal regulations. Under the law, state agency directors will now have to submit a “regulatory impact statement” to the Legislature that demonstrates a “convincing need to exceed the applicable federal standard.”

Business Incentives

Under Senate Bill 40 signed into law, companies with out-of-state employees qualify for state economic development incentives as long as they account for no more than 25 percent of their workforce.

Environmental Cleanup

As part of a supplemental funding package signed into law, $69 million in ongoing revenue from online sales tax will be used to clean up 3,000 contaminated sites across the state. The allocation replaced the need for Senate Bill 943, which would have greatly increased recycling tipping fees for industrial companies.