Michigan must have a business tax system that is competitive for manufacturers compared to tax rates for manufacturers in other states and nations. Manufacturing remains, by far, the largest business sector of Michigan’s economy by gross state product. And, with the industrial sector’s inherently high economic multiplier benefits, jobs, and huge capital investment, Michigan’s industrial assets are targeted aggressively by other states for attraction. To be competitive, the tax system must recognize that not all sectors are the same.

MMA will pursue the following tax policy reform measures:

• Eliminate Personal Property Taxes on Manufacturing Equipment
• Implement Competitive Economic Development Programs
• Eliminate the Gross Receipts Tax Base of MBT
• Eliminate the MBT Surcharge
• Recognize Investments Unique to the Manufacturing Sector
• Benchmark Overall Manufacturing Tax Rates
• New Tax Structure
• Clarify Definition of Manufacturing Property for Property Tax and MBT
• Establish a Consistent and Predictable Regulatory Environment
• Fix the Tax Regulatory Environment