Shiawassee Economic Development Partnership: Business Costs

Shiawassee Economic Development Partnership

Corporate Tax - Sales Tax - Telephone Tax - Machinery/Equipment Tax - Local Property Tax
State Property Tax - Workers Compensation - Electric & Natural Gas - Water and Sewer

Corporate Income Tax/Franchise Tax	State	Local
Rate (range)	1.90%	0%
Formula (e.g. Sales, Property & Payroll)	Contact SEDP
Federal Taxes Deductible	No
Accelerated Depreciation Permitted (Yes or No)	Yes
Personal Income Tax	3.9%	0%
Rate (Range)	3.9%	0%
Earned Income	3.9%	0%
Unearned Income (e.g. Dividend)	0%	0%
Local Occupation Tax (Paid by Employee)	0%	0%
City Residents	0%
Non-City Residents	0%
Local Wage Tax (Paid by Employer)	0%	0%
City Residents	0%
Non-City Residents	0%

Source: Michigan Economic Development Corporation

Sales/Use Tax
State	6%
Local	0%
Total	6%
Sales Tax Rate by Utility:
Electric Power	*Exempt
Natural Gas	*Exempt
Fuel Oil	*Exempt
Water	0%
Sewer	0%
Hazardous Waste Disposal	Contact SEDP

*Exempt if used directly in manufacturing
Source: Michigan Economic Development Corporation

Telephone Tax
Local	Same as Sales Tax
Long Distance In State	Same as Sales Tax
Long Distance Out of State	Same as Sales Tax

Source: Michigan Economic Development Corporation

Machinery & Equipment Subject to Sales/Use Tax
Production	Exempt
Non-Production	Taxable
Pollution Control	Exempt
Office Furniture/Fixtures/Equipment	Taxable
Sales/Use Tax (Yes or No) on
Office Building Construction Materials	Taxable
Industrial Building Construction Materials	Taxable
Manufacturers' Raw Materials	Exempt
Standard Software	Taxable
Custom Software	Exempt
Intangible Property
Describe What is Subject to Tax Rate (e.g. Accounts	Exempt
Receivable, Capital Stock)	Exempt
Basis & Rate	Exempt
Stock Bond Transaction Fee (Yes or No & its Yes Rate)	Exempt

Source: Michigan Economic Development Corporation

Local Real and Personal Property Tax Rates
Location of Business	School District	RESD	S.E.T.	School Debt	Non-Homestead	County Taxes	City Taxes	Misc.	Total Taxes
City of Corunna	Corunna	3.9350	6.0000	2.3500	18.0000	7.3056	13.3044	5.5520	56.4470
City of Durand	Durand	3.9350	6.0000	6.2898	16.5816	7.3056	16.6252	4.4625	61.1997
City of Laingsburg	Laingsburg	3.9350	6.0000	8.7000	18.0000	7.3056	15.5069	0.9736	60.4211
City of Owosso	Owosso	3.9350	6.0000	2.9137	17.7259	7.3056	13.1091	2.0244	53.0137
City of Perry	Perry	3.9350	6.0000	7.0000	14.7771	7.3056	14.5265	1.0000	54.5442

Source: Shiawassee County Tax Equalization Department

State Property Tax Effective Rate per $100
Real Property	$.060
Personal Property (machinery/equipment)	$.060
Property Tax After Core Income Tax
Rate	$.060
Property Tax After Core Income Tax & State Excise Tax
Taxable Items	$.060
Subject to Personal Property Tax
Production Machinery & Equipment	Taxable
Non Production Machinery & Equipment	Taxable
Pollution Control	Exempt
Inventory	Exempt
Raw Materials	Exempt
Work in Progress	Exempt
Finished Goods	Exempt
Freeport Legislation	N/A
Applicable to Warehousing	N/A
Applicable to Manufacturing	N/A
Goods Stored in a Public Warehouse	N/A
Office Furniture-Fixtures	Taxable
Computer Equipment	Taxable
Workstations	Taxable
Telephones	Taxable
Furniture	Taxable
Company Vehicles	Taxable
Standard Software	Taxable
Custom Software	Exempt

Source: Michigan Economic Development Corporation

Workers Compensation and Unemployment Insurance
Workers Compensation
Average Cost for All Manufacturing per $100 Payroll	Contact SEDP for more information
Average Rate for Office Workers (8810)	Contact SEDP for more information
Maximum Weekly Benefit	$89.00
Unemployment Insurance
Taxable Base	$9,000
Rate %
Average Among Existing Employers	Experience rated after 5 years of existence
Average Among New Employers	2.70%
Maximum Weekly Benefit	$362.00

Use Workers Compensation Cost Estimator at http://medc.michigan.org/services/workerscomp/estimator/

Source: Michigan Economic Development Corporation

Electric & Natural Gas
Electric Power
Name of Provider	Consumers Energy
% of Reserve Margin	Depends on Location
State Electric Power Deregulated (yes or no, if yes provide date)	Yes - January 2002
Average Cost per kWh (cents)	Small	Medium	Large
	1000 kW & 432,000 kWh	10000 kW & 4,320,000 kWh	50000 kW & 21,500,000 kWh
Industrial	5.43	5.41	5.42
Natural Gas
Name of Provider	Consumers Energy

Service Category	Customer Charge Per Month	Distribution Charge
		Original	Interim Surcharge	Total
GS-1	$7.50 per meter	$1.4030	$0.0691	$1.4721 per Mcf
GS-2	$11.60 per meter	$1.2624	$0.0485	$1.3109 per Mcf
GS-3	$360.00 per meter	$0.6431	$0.0350	$0.6871 per Mcf

The economic break even point between GS-1 and GS-2 is approx. 350 Mcf per year and the economic break even point between GS-2 and GS-3 is approx. 6,750 Mcf per year.

Source: Consumers Energy

Water & Sewer Rates
	Owosso	Corunna	Durand	Perry
Water
Major Source	Ground Water Wells*	Ground Water Wells	Ground Water Wells	Ground Water Wells
Name of Provider	City of Owosso	City of Corunna*	City of Durand	City of Perry
Max Rated Capacity (mgd)	5.5	5.5	1.44	0.6
Average Daily Demand (mgd)	2	2	0.439	0.2
Peak Demand (mgd)	3.6	3.6	0.847	0.3
Cost per 1000 gallons	$1.20	$2.25	$3.50	$2.12
Water Connection Fee	Varies - based on actual cost of service connection and meter	$2,000	$1700.00	$2,700
System Fire Flow Capacity (gpm)	over 3500
Sewer
Name of Provider	City of Owosso	City of Corunna	City of Durand	City of Perry
Rated Capacity (mgd)	6	6	0.8	0.3
Average Daily Demand (mgd)	4	4	0.474	0.16
Cost per 1000 gallons	$2.45	$2.75	$4.45	N/A
Sewer Connection Fee	Varies - dependent on location and service size	$1,500	$1,600	$2,815
	*Central Water Treatment including softening	* Corunna purchases wholesale treated water from Owosso
Water & Sewer Rates
Sewer Demand and Capacity for Owosso and Corunna is based on statistics from the wastewater plant that services the mid-county area - Corunna, Owosso, Caledonia Charter Township and Owosso Charter Township

Source: Individual Communities

The SEDP is a department of the Shiawassee Regional Chamber of Commerce in collaboration with Public/Private Partners

215 N. Water St., Owosso, Michigan 48867 (989) 723-5149 Fax (989) 723-8353

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Last updated: Monday July 10 2006

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