HomeMy WebLinkAboutResolutions - 2005.05.26 - 27942Miscellaneous Resolution #0510.5
BY: Commissioner Dave VVoodward, District #18
RE: Board of Commissioners - Support for the Michigan Jobs and Investment Act
TO: Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen;
WHEREAS Oakland County is the economic engine of Michigan and has already taken bold
steps to help attract new businesses and good paying jobs to strengthen our economy; and
WHEREAS the Michigan Single Business Tax (SBT) is the only general tax on business in
Michigan; and
WHEREAS the Washington D.C. based Tax Foundation ranked Michigan's SBT the absolute
worst among U.S. corporate state taxes; and
WHEREAS the SBT, as it exists today, hinders Oakland County's ability to most effectively
attract the new businesses and good-paying jobs to locate here; and
WHEREAS under the current SBT, companies that make no profits still pay a sizable tax; and
WHEREAS manufacturers pay the brunt of the SBT; and
WHEREAS the SBT tax rate is relatively high; and
WHEREAS the SBT today actually penalizes employers for creating jobs and is an impediment
to job growth; and
WHEREAS to revitalize Michigan's and further strengthen Oakland County's economy, we need
bold steps that will boost job creation and business investment; and
WHEREAS the Michigan Jobs and Investment Act is currently before the Michigan State
Legislature; and
WHEREAS this Act will cut the standard SBT rate from 1.9 to 1.2 percent, a 37 percent
reduction; and
WHEREAS this Act will cut the small business SBT rate from 2.0 to 1.2 percent, a 40 percent
reduction; and
WHEREAS this Act will create a refundable 35 percent personal property tax credit for
manufacturing, research and development property to encourage business investment in
Michigan and Oakland County; and
WHEREAS this Act creates a new Research and Development Compensation Tax Credit equal
to 1.2 percent of compensation for research and development staff, helping support the
attraction and retention of skilled workers; and
WHEREAS this Act changes the tax formula to put more emphasis on profit, less on equipment,
salaries and health care. The plan eliminates penalties for employers who invest in worker
benefits; and
WHEREAS this Act will bring taxes on insurance companies more in line with national averages;
and
Chairper ove the/al:option of the foregoing Resolution.
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WHEREAS this proposal is revenue neutral, and remains committed to the philosophy that the
state's priority should be to reduce spending to the current level of resources; and
WHEREAS this proposal insures that the manufacturing sector should not be taxed far more
than businesses in the financial sector; and
WHEREAS this Act will strengthen and complement initiatives already underway in Oakland
County, such as, Emerging Sectors and Automation Alley.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners
supports the Michigan Jobs and Investment Act.
BE IT FURTHER RESOLVED we find that this proposal offers common-sense solutions to the
disincentives and inequities the SBT has caused on job creation and business investment in
Oakland County and Michigan.
BE IT FURTHER RESOLVED we find that this proposal offers long-overdue fairness to the
business tax structure in a responsible way, without moving more burdensome taxation to
families through higher state or local taxes; and
BE IT FURTHER RESOLVED that a copy of this resolution is forwarded to the Governor, all
Oakland County state legislators, members of the House and Senate Taxation Committees, the
Oakland County Executive, Oakland County's legislative lobbyists and the Michigan Association
of Counties.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners instructs our
county commission lobbyist to work extensively towards the passage of the Michigan Jobs and
Investment Act.
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Miscellaneous Resolution #05105 May 26, 2005
The Chairperson referred the resolution to the General Government Committee. There were no
objections.