One of the most talked about items on our 2010 Legislative Agenda is our tax reform proposal which would expand the sales tax to services (exempting business to business transactions as well as health care, education and housing), lower the overall sales tax rate from 6% to 5.5%, eliminate the MBT surcharge, and reduce the gross receipts rate from 0.8% to 0.45%.
The proposal would also exclude real estate commissions and other services that are already taxed to avoid double taxation. It’s important to note too that our tax reform proposal would be revenue neutral in FY 2010 and would provide a more stable and predictable tax structure for our state.
This proposal would move Michigan toward our goal of becoming more competitive and would send a strong message to the business community and investors that Michigan is serious about creating jobs.