Gaylord/Otsego County Chamber of Commerce

Government Relations Update from Jamie Callahan

June 9, 2008

Identity Theft Bills May Create Business Burden

A package of bills intended to protect consumers against identity theft may have the unintended consequence of imposing additional burdens on the business sector.Under the bill package, House Bills 6096-6105, businesses would be required to formally notify employees if personal information is transferred between databases, make changes to payroll or submit tax information.An additional aspect requires businesses notify consumers when their information is bought or sold.

Prime organizer of the bill package, Rep. Brian Palmer, has held work group meetings to address the concerns addressed by business groups, stating it is not his intent to slow the rate of commerce in Michigan.

Committee action is slated for this week.It is likely language will be crafted by that time to eliminate much of the burden the bills currently create.The Chamber and Alliance will be working on this situation, so stay tuned for further updates.Additional bill information can be found at www.mileg.org.

Regional Policy Conference Set

Business leaders from across western and northern Michigan will gather in September for a policy forum to discuss issues common to both regions and develop public policy initiatives to set in motion.The event will be held September 18-19 in Grand Rapids at the JW Marriott hotel and DeVos Place, and is hosted by the Traverse City, Grand Rapids, Holland, Muskegon, and Grand Haven Chambers of Commerce.For more information, go to www.grandrapids.org/policyconf

Does Your Business Qualify for the MBT Small Business Credit?

After two northern Michigan hearings on the impact of the new MBT and surcharge on job providers, it became evident that many businesses and accounting firms may not be fully aware of the MBT Small Business Credit.

This is a credit that is factored into the MBT for smaller businesses, and many times brings a company’s tax liability more in line with their previous liability under the SBT.

There are three benchmarks that must be met for a company to likely qualify for the small business credit.All three of the criteria must be met to receive the credit, which are:

1. Have gross receipts, usually total sales, must be less than $20 million and

2. Officer(s) or owners(s) compensation and director(s) fees must be under $180,000 (including partners in a partnership and members of an LLC), and

3. Adjusted business income must be less than $1.3 million

Businesses should discuss this option with their tax preparers as a possible alternative to the increased rates many northern Michigan businesses have seen with the new MBT.