taxes

DTE Energy

DTE Energy is among 60 Fortune 500 companies that did not pay federal income taxes in 2018. That’s according to the non-partisan Institute on Taxation and Economic Policy.

DTE spokesperson Peter Ternes confirmed in an email they did not pay those taxes last year.

Ternes says the company, which provides electricity and natural gas to millions of customers in Michigan, follows current federal tax laws and claims their capital investments as deductions.

Max Johnston / Interlochen Public Radio

Dozens of school districts across the state will put bond proposals to voters next month. They are asking residents to pay for improvements in schools, but in some small communities in northern Michigan, a tax hike for your schools can be a tough sell.

The clock is ticking. CPAs and tax attorneys are working long hours right now as taxes are due in less than a month.

But what should we be doing now so that filing for 2018 goes smoothly, in light of the huge tax reform bill that was recently passed?

Governor Rick Snyder has signed a budget bill that accelerates spending on road repairs in time to help with the spring and summer construction season.

 

The bill shifts $175 million from next year’s construction season to use this coming spring and summer to fix roads.

 

House Republicans in Lansing have a plan to give you an income tax break — and eventually to end the tax. 

State Rep. Lee Chatfield (R-Levering) introduced a measure last week that would cut the rate from 4.25 percent to 3.9 percent in 2018. The legislation would then reduce the income tax yearly by .1 percent until it was eliminated. 

“I think this is a very fair tax reform that impacts every family,” Chatfield told IPR News Radio. “It provides yet another opportunity for our families to move back here to Michigan, begin working [and] keep more of their hard-earned dollars.”

Chatfield spoke with IPR News Radio about his tax plan:

 

Revenue from the income tax made up about one-third of the state’s total revenue in 2015 – around $9 billion, according to the State Budget Office.

The so-called "dark store" approach to valuing property — an approach which allows stores to base their property taxes on the stores that have closed around them — has allowed big box stores in Michigan to cut their taxes by at least $100 million. It has left communities around the state struggling to find the money they need to pay for municipal services.

 

Some politicians, including state Rep. David Maturen, R-Vicksburg, hopes to close the dark store tax loophole with bipartisan legislation, House Bill 5578.

DRust / Flickr

The state Senate has approved its $1.5 billion plan to boost road funding.

Lt. Gov. Brian Calley cast two tie-breaking votes on bills to gradually raise Michigan’s gas tax by 15 cents over three years. Calley says those votes were meant to move the process along toward reaching a final compromise on road funding.

“I think this was a positive step toward actually getting our roads fixed,” Calley told reporters shortly after casting the rare tie-breaking votes.

Road repair isn't the only issue at stake when we head to the polls next month to decide the fate of Proposal 1. The Earned Income Tax Credit is part of that proposal. The program is designed to help the working poor, but was scaled back in Michigan in 2011.

State lawmakers have approved boosting the EITC if voters approve the road funding ballot proposal that would raise the sales tax from six percent to seven percent. Nearly 800,000 low-to-moderate income families in Michigan could see this targeted tax relief expanded if the proposal passes.

April 15th, the looming tax deadline, is approaching.

While it can be complicated for anyone to figure out what we owe Lansing and Uncle Sam, there’s a particular group facing extra complications: same-sex couples in Michigan. These couples can file a joint form for their federal taxes, but the state of Michigan considers them single.

Ingersoll found guilty of tax fraud

Mar 10, 2015
Peter Payette

Grand Traverse Academy founder Steven Ingersoll has been found guilty of tax fraud. A federal jury acquitted Ingersoll of wire fraud – a charge that carries a more severe penalty. Ingersoll evaded taxes by moving money between business and personal bank accounts.

MLive reporter Cole Waterman has been following the trial in Bay City for a month. He says Ingersoll and the other defendants heard the verdict at about 12:30 Tuesday afternoon.

"None of the defendants seemed to react in any overt way," said Waterman. "They were all pretty stoic.”

Governor Rick Snyder has signed legislation to raise $1.2 billion to repair roads. But, the money all depends on voters approving a tax hike.

One of the bills signed by the governor will guarantee that all state taxes paid at the pump will go to roads. Increasing the sales tax by a penny on every dollar to 7 percent would ensure schools, local governments and mass transit don’t lose money. A sales tax increase requires a statewide vote.

 

Tax increment financing, or TIF, is a flexible tool for downtown development authority boards aiming to encourage private investment and increase the taxable value of their municipality.

TIFs enable portions of a city’s regular property tax to be used for economic development, without a vote from taxpayers. There are eight types of authorities in Michigan that can engage in this type of financing.

David Bieri is an assistant professor of urban and regional planning at the University of Michigan.

Bieri explains the good and bad uses of TIFs. In the early 2000s, DDAs from Kalamazoo to Detroit addressed blight through brownfield remitigation. On the other hand, Bieri cites Bloomfield Park, the unfinished mini-city in Bloomfield Hills, as an example of TIFs gone bad: Blight was created rather than mitigated.