Compete to Succeed 9
Specific Actions for Leaders :
■ Continue robust funding for the Strategic Outreach and Attraction Reserve Fund ( SOAR ).
■ Support the SOAR fund by capturing the income tax from SOAR projects and depositing revenue in the SOAR Fund .
■ Maintain flat rate income tax .
■ Ensure competitive effective tax rates for manufacturers compared nationally and avoid tax increases on manufacturers .
■ Support development of clear and consistent agency guidance across all state and local taxes in Michigan .
■ Maintain fair property tax appeals process , using all appropriate valuation methods .
■ Oppose broad , unilateral and import-restrictive trade measures that unfairly increase costs and restrict demand on Michigan-made products .
■ Oppose transaction taxes that pyramid tax burdens , such as service taxes on business services .
■ Ensure flexibility in tax administration and imposition to address COVID-19 related challenges .
■ Amend the Michigan Tax Tribunal Act to ensure the tribunal has clear authority to protect private and confidential business information .
■ Eliminate personal property taxes on commercial property .
■ Allow local units of government discretion to exempt commercial personal property tax for manufacturers .
■ Eliminate the Essential Services Assessment .
■ Simplify Essential Services Assessment administrative burdens by reducing to a single tax rate .
■ Create R & D tax credit for manufacturers allowing for refundability .
■ Cut the personal income tax rate to 3.9 %.
■ Increase the child care tax credit to $ 1,500 .
■ Extend PPT situs exemptions for remote personal property for 2023 and then permanently .
■ Eliminate PPT on all office equipment such as laptops , computers , monitors and printers , both remote and in offices .
■ Benchmark the corporate income tax rate to other competitor states with the lowest rate in the nation ( such as Indiana ).
■ Support Michigan ’ s critical tool & die industry .
■ Create Renaissance Zones for tool , die and mold operations .
■ Create targeted R & D tax credit for tool , die and mold operations allowing for refundability .
■ Create capital investment tax credits for tool , die , mold and die cast investments .
■ Create a targeted capital access fund for tool , die , mold and die cast operations .
■ Create special Going PRO talent dollars targeted specifically at tool , die , mold and die cast companies .
■ Exempt tool , die , mold and die cast sectors from the income and corporate tax .
Savings from Industrial Personal Property Tax Elimination
$ 576 Million Annual Savings
$ 4 + Billion Saved in Total ( 2016 – 2023 )
For more information , contact :
Mike Johnston
MMA Executive Vice President of Government Affairs & Workforce Development johnston @ mimfg . org 517-487-8554 mimfg . org