A battle looms for Republicans and Democrat lawmakers in the Michigan Legislature as amendments are needed to clear up some misinterpretations of the Michigan Business Tax (MBT) bills passed last year!
Noteworthy among the amending bills is SB 1217, which the construction industry needs to clarify the intent of the legislature to allow contractors to deduct from their gross receipts the amounts for labor and materials being paid in contracts with subcontractors or suppliers. A recent interpretation by the Michigan Department of Treasury seemed to cloud this issue and made it necessary to go back to the source and iron it out for the last time.
It was clear to the lawmakers and construction industry representatives last year when the MBT was passed. However, it was made questionable through Treasury language in the rules promulgated after the fact.
One Thursday, March 27, 2008, MABC President Chris Fisher and Allied Electric’s President Mike Powers were set to testify about the effects of the new Legislation as written. Copies of their comments as presented to the Senate Finance Committee are linked below:
Chris Fisher Senate Finance Testimony
Mike Powers Senate Finance Testimony