The state Senate last week passed a measure that would kill the controversial, year-old surcharge on the Michigan Business Tax.
SB 1242, sponsored by Sen. Mark Jansen, R-Gaines Township, would phase out the surcharge over three years, beginning next year.
Legislators last year added the 21.9% surcharge to the business tax in a move to replace a new service tax. At the time, many of the state’s powerful business lobbyists supported the new surcharge as a way to raise revenue in place of the service tax. Since then, many businesses have become critical of the surcharge, and are pushing for its repeal.
The measure now heads to the House.