Michigan Business Owners Urged to Speak Out Against Surcharge

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Maurice Pogoda, president of Pogoda Management Co., Michigan’s largest operator of self-storage facilities, recently sent a letter to fellow business owners in the state, urging them to support efforts toward reducing the Michigan Business Tax (MBT), which received a 21.99 percent surcharge during budget proceedings last year. In addition to the surcharge, legislative changes were made that significantly impact the commercial real estate sector and the value of property. According to Pogoda, companies from across the state have reported experiencing a 200 percent to 400 percent tax increase due to the new MBT and surcharge.
 
Pogoda advised business owners to immediately contact their legislators and ask for a repeal of the surcharge as well as a number of other changes. He also explained that they can join the efforts of the Michigan Chamber of Commerce, which is spearheading legislation to repeal the surcharge. The chamber’s website contains a sample letter to legislators that owners can personalize for their own use.
 
Pogoda said letters should ask legislators to: 

  • Eliminate the MBT surcharge
  • Reinstate the 10-year Investment Tax Credit
  • Include real estate in the definition of inventory for the purposes of “purchases from other firms”
  • Allow Common Area Maintenance to be deducted from gross receipts in calculating the new tax
  • Offer a “fresh start” for allowed depreciation on all commercial real estate beginning Jan. 1

Concerned business owners can also participate in lobbying efforts being made by the Building Owners and Managers Association (BOMA). BOMA of Metropolitan Detroit’s Government Affairs Committee, along with professional lobbyists Scofes & Associates Consulting, will petition before Michigan decision-makers to protect the interests of commercial real estate. For more information, visit www.bomadet.org.
 
Based in Farmington Hills, Mich., Pogoda Management has approximately 3 million square feet of self-storage space under management in Michigan and Ohio. Founded in 1987, the firm provides brokerage, management, investment and consulting services to the self-storage industry. For more information, visit www.pogodaco.com.

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