October 2, 2006 -- Senate Republicans unanimously voted to expedite abolishment of the Michigan business tax surcharge, instituted last December to balance the 2007-08 budget. Four Democrats (Senators Barcia, Clarke, Gleason, and Schauer) joined 22 Republicans voting yes, and sent SB 1242 to the Democrat-led House. The bill would decrease the MBT surcharge over three years and eliminate it thereafter. Language in the current surcharge act provides for a 2017 sunset.
Official fiscal analysis estimates the bill would reduce Michigan business tax revenue by $119.5 million in FY 2008-09, $333.3 million in FY 2009-10, $555.8 million in FY 2010-11, and $660.2 million in FY 2011-12. Although the surcharge is not set to expire until 2017, the fiscal analysis does not project estimates for the years beyond 2012..