Michigan Businesses To Save Millions
Michigan businesses are getting a gift of sorts from the state. The so called quarterly “Obligation Assessment” is coming to an end, months earlier than originally planned.
It means about 55 million less in taxes assessed against businesses over the next 5 months. When unemployment claims skyrocketed during the early part of this decade, the state issued bonds to cover the costs. Since then, Michigan businesses have been charged the assessment to get the bonds paid off. The original payoff date was estimated to be next May. But an accelerated payoff schedule was set up and it worked as planned. The bonds will be completely paid off today. The assessment will no longer be charged.
Average businesses in Michigan will save anywhere between $65-dollars, to more than $200 dollars per employee annually.
The Michigan Manufacturers Association and the State Chamber of Commerce are applauding the early payoff, pointing to what businesses can do with the millions collectively, staying in their accounts, rather than going to the state due to the higher tax rate.