Official Policy
Single Business Tax Health Care Exclusion
March 2005

The Ann Arbor Area Chamber of Commerce supports legislation, such as House Bill 4342, that would remove health care costs from single business tax (SBT) equation.  Businesses that pay the SBT should not have to pay tax on the health care benefits they provide.  

House Bill 4342 would exclude 100 percent of the health care benefits provided beginning in January 2005.  The current law allows businesses to exclude from the SBT base 20% of the health care benefits they provide, with that percent increasing in future years to 40 percent in 2006 and 50 percent in 2007, 2008 and 2009.