Adoption of the Michigan Business Tax in 2007 was the most significant, but hardly the only, change in the Michigan tax structure reflected in the newly-revised Outline of the Michigan Tax System, released today by the Citizens Research Council of Michigan. CRC has maintained the Outline since 1962.

The Outline of the Michigan Tax System contains summaries of all taxes levied by state and local government in Michigan. It contains a wealth of information on tax bases and rates, credits and exemptions, tax administration and reporting, and provides a statistical and legal history for each major tax. It also provides links to state agencies in order to provide the user with easy access to statutory provisions, tax forms, and rules and regulations issued by the administrating agencies. Finally, it contains summaries of recent tax legislation.

In addition to the creation of the MBT, other tax legislation provided major property tax relief to Michigan-based businesses. Statutory changes were made to exempt commercial and industrial personal property from a number of state and local property taxes, including the 18-mill local school operating property tax, the 6-mill State Education Tax, and the Industrial Facilities Tax. The new MBT also provides a 35 percent credit for personal property taxes.

The Personal Income Tax was increased from 3.9 percent to 4.35 percent, effective October 1, 2007. The increase will be phased out between October 1, 2011, and October 1, 2015.

The Outline of the Michigan Tax System can be accessed at www.crcmich.org/TaxOutline.