United to advocate professionalism, integrity and growth for Michigan's green industry

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Michigan’s Green Industry – Continuing to GROW!

About the Industry
With a combined economic impact of $5.715 billion, Michigan’s nursery, perennial plant production, Christmas tree, sod producers, landscaping and lawn care industries continue to grow!

* We are the 4th largest Nursery State in the Nation!

*#1 specialty crop in Michigan
*Landscape services and Retail Sectors = $4.5 billion economic impact
*Together, all segments of the Green Industry account for a total of 36,162 individuals employed (Knudson & Peterson, 2012). According to US Census Data, this equates to 1 out of every 170 Michigan citizens between the ages of 18-65.

About Us

Federal Tax Bill
On Friday, December 17, the President signed into law H.R. 4853, the Unemployment Insurance Reauthorization and Job Creation Act of 2010. The legislation contained many tax provisions important to growers. Below is a summary of provisions contained in H.R. 4853. The complete summary and legislation text can be found here: http://finance.senate.gov/legislation/details/?id=10874ed6-5056-a032-52cd-99708697eff0

Estate Tax Relief
Tax Rate and Exemption Amount - In 2009, the estate tax exemption was $3.5 million per person and the top tax rate was 45 percent. The estate tax was repealed for 2010. It was scheduled to be reinstated in 2011 with a $1 million exemption and top rate of 55 percent. The bill sets the exemption at $5 million per person and the top tax rate at 35 percent for two years, through 2012. The exemption amount is indexed beginning in 2012. For estates passing in 2010, there is a choice of 2010 or 2011 law. In 2013, the exemption will revert to $1 million per person and the top rate will increase to 55 percent.

Capital Gains Taxes
Under current law, the capital gains tax rate for taxpayers below the 25 percent income tax bracket is zero percent. For those in the 25 percent bracket and above, the capital gains rate is 15 percent. For 2011, the rates would have become 10 percent and 20 percent, respectively. This bill extends the current capital gains rates for an additional two years, through 2012.

In early February, MNLA did a fax survey of our members to assess the impact of the proposal to eliminate the Michigan Business Tax and replace it with an across-the-board tax on all C Corporations located in the State of Michigan.

The results showed that the negative impact on our membership would be substantial and were shared with our lobbyists at the Michigan Farm Bureau. Michigan's Lieutenant Governor Calley's office released a draft on February 8, 2011 of the new Michigan Corporate Income Tax that would replace the Michigan Business Tax and surcharge. This draft is attached for your review.

Please, if you haven’t already responded, let me know if this will have a negative impact on your business by sending me an email to:  amyf@mnla.org.

CLICK HERE to view the draft (PDF)


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