Business & Economy

Senate passes bill to expand tax collecting job for business

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BY CAITLIN DeLUCA
Capital News Service
LANSING — Employers across the state would start withholding city income taxes from employees who live in cities that have income taxes even if the business isn’t in the city, according to bills proposed in the Legislature. The bills, sponsored by Sen. Goeff Hansen, R-Hart, and Rep. Al Pscholka R-Stevensville, would mandate that suburban employers collect the local income tax of employees who live in the 22 cities across the state that impose the tax. The Senate version has cleared the Senate Committee on Government Operations and the House version is still in the House Committee on Tax Policy. Employers in cities with income tax now have to withhold and remit the tax on behalf of their employees. With the proposed change, employers who are not located in the city and don’t receive services from them would collect the tax from employees living in income taxing cities, said Tricia Kinley, senior director of tax and regulatory reform for  the Michigan Chamber of Commerce.

Business & Economy

Business tax climate warms, but are funds for services at risk?

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By LAUREN GIBBONS
Capital News Service
LANSING — A new report suggests the repeal of the Michigan Business Tax (MBT) dramatically boosted the Michigan’s tax climate, but many officials and experts say there’s still room for improvement in the state’s tax policy. The Tax Foundation, a nonpartisan group in Washington, ranked Michigan 12th in the nation in overall business tax climate, a 7-point jump from its rank last year. The state also saw the largest rise in corporate business tax climate, moving from 49th to 7th in one year. The report based its findings on an evaluation of each state’s tax structure. Compared to other Midwest states, the foundation said Michigan’s business climate is one of the best — Illinois ranked 29th while Ohio and Wisconsin came in at 39th and 43rd respectively.