LANSING (AP) — Smokers and alcohol drinkers paid more taxes last year than Michigan companies paid in net business income taxes, according to a newspaper’s analysis.
Revenue from so-called sin taxes on tobacco, beer, wine and liquor totaled $290.5 million in the 2014 fiscal year, more than twice the $137.6 million net income taxes paid by Michigan businesses after $768.8 million in refunds from tax credits, The Detroit News reported.
State revenue numbers show net business income taxes have dropped 90 percent since 2011 when Gov. Rick Snyder and lawmakers delivered business tax relief. The figures show that has depleted the state’s main operating fund of $1.33 billion.
The percentage of general fund revenue from business income taxes also has dropped as tax credit payouts to companies have grown.
Regardless, the tax trend is expected to continue.
Taxes from the Michigan Business Tax and Corporate Income Tax are projected to total $244 million this year, while beer, liquor, wine and tobacco taxes will total about $280 million, according to Senate Fiscal Agency data.
- Posted June 03, 2015
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Report: So-called sin taxes exceed business taxes
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