LANSING, Mich. — State Sen. Kevin Daley’s legislation to provide financial relief to businesses that were shuttered during the pandemic took public testimony from affected business owners Wednesday morning during a meeting of the House Committee on Tax Policy.
“The heavy-handed orders and shutdowns from Gov. Whitmer’s administration forced countless mom-and-pop shops to permanently shut their doors,” said Daley, R-Lum. “While I know it’s too late for some, and I feel for those who didn’t make it, I introduced this bill to try and help as many businesses as possible keep their heads above water.
“I hope to see this bill advance to the governor and get signed into law so we can start helping these folks out.”
Senate Bill 393 would provide businesses with additional property tax relief for tax years 2020 and 2021.
The legislation includes a two-year refundable tax credit for businesses that were shut down due to the pandemic for at least six weeks and lost at least 25% of their sales. This is an income tax credit that would allow the eligible business to claim a credit equal to the amount of property taxes attributable to the business during the same calendar year.
The property on which the credit is based must be used in connection with the afflicted business. It would not apply to property held by a business that is used for other purposes.
“This isn’t an exemption — businesses still have to pay their taxes. This is just a way to help recover some of their losses through their annual tax return,” Daley said.
The bill remains before the committee for additional consideration and public testimony.