Mich. caves on tax law

TORONTO, Ont. – The Michigan House of Representatives passed a bill last month that will reduce a Canadian carrier’s Michigan Single Business Tax liability by at least two-thirds. The bill, introduced by Michigan Senator Bill Schuette, passed by a vote of 88 to 14.

“Passage of the legislation, which will isolate strictly Michigan business revenues for tax purposes and give Canadian truckers a break on the amount of driver wages that must be included for tax purposes, is a major victory for the Canadian industry and for Canada-US trade,” David Bradley, Canadian Trucking Alliance (CTA) chief executive officer says.

The Ontario Trucking Association and CTA, along with the Quebec Trucking Association and the federal and Ontario governments, lobbied for the change. Bradley attributed the move to that co-operative effort.

The OTA formal announced the passage of the legislation at a function in Windsor, Ont. on Dec. 8. The Governor of Michigan, George Engler, himself a supporter of the bill, was expected to sign it into law late last month. It goes into effect immediately. n

Truck News is Canada's leading trucking newspaper - news and information for trucking companies, owner/operators, truck drivers and logistics professionals working in the Canadian trucking industry.

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