SBT TAX BASE: 10-YEAR PHASE-OUT

OF HEALTH PLAN COSTS

House Bill 4087

Sponsor: Rep. Mark Schauer

Committee: Tax Policy

Complete to 3-5-99

A SUMMARY OF HOUSE BILL 4087 AS INTRODUCED 1-28-99

The bill would amend the Single Business Tax Act so that gradually payments a firm made under health and welfare and non-insured benefit plans and payments of fees for the administration of such plans would not be included in compensation and, thus, would not be included in the SBT tax base. The full elimination of the payments from the tax base would take 10 years. The percentage of payments excluded from the tax base would be as follows:

For tax years beginning on or after January 1, 1999 and before January 1, 2000, 10 percent; for tax years after January 1, 2000 and before January 1, 2001, 20 percent; and so on, until 100 percent of payments would be excluded for tax years that began after January 1, 2008.

MCL 208.4

Analyst: C. Couch

This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.