What the New Michigan Tax Law Might Mean for the States Real Estate Market

16 Jun

Governor Snyder’s changes to Michigan’s tax system are now the law. Supporters of the new law like, Business Leaders of

Rick Snyder

Michigan President and CEO, Doug Rothwell, said in a news release that “with simpler, fairer tax structure, Michigan can be more competitive and, as a result grow jobs.” The Legislature passed the bills at the end of May this year. As first reported by Crain’s Business Detroit,  the legislation enacted a business-tax cut of about $1.7 billion, ending the Michigan Business Tax and replacing it with a 6 percent income tax on “C” corporations. All other business entities — such as sole proprietorships, limited-liability companies and other individually owned businesses — would pay only individual income tax. Those entities currently pay both MBT and individual income taxes.

So, what might this news also mean for the Real Estate market and property investors here in Michigan?

Building for lease on Washington St, Royal Oak, MI

As those in the Real Estate world know, when companies grow in employee size and increase their revenues through cost savings they often times grow into larger business spaces as well. So the Real Estate hopefuls in Michigan may benefit by keeping a close watch on the many existing, available commercial spaces that may start to fill over the course of the next year, as the new Michigan tax law begins paying off for business owners.

According to large real estate search sites like cityfeet.com, there are currently over 4,600 commercial properties for lease or sale in Oakland County, Michigan alone.

Sources:

http://www.crainsdetroit.com/article/20110525/FREE/110529937/snyders-changes-to-michigans-tax-system-now-are-the-law#

http://www.cityfeet.com/Commercial/Search/

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