Doing Business in Muskegon Michigan

Income Taxes

The City of Muskegon has in place a local income tax. Our city adopted the Michigan Uniform City Income Tax Ordinance effective July 1, 1993.

Corporations

All corporations doing business or located in the City of Muskegon including chapter S corporations must file a corporate return.

Corporate Instructions and Forms

Partnerships

For partnerships doing business or located in the City of Muskegon, each partner in a partnership is required to file an individual return unless the tax is paid by the partnership. The partnership must file a partnership return.

Partnerships and Forms

Withholding Requirements

Every employer is required to withhold who:
a.) has a location in the city, or
b.) who is doing business in the city even though it has no location in the city

To register your business for withholding click on the form below

Employer’s Withholding Registration M-SS-4

Single Business Tax (SBT)

The SBT is a modified value-added tax. A rate of 2.3% is added during the production process. Eligible small business may use an alternative 2.0% tax on adjusted business income.

Workers’ Compensation

Michigan employers can choose among a wide variety of rates. The lowest rate is typically one-half the highest rate. The average Michigan firm paid less in 1992 than it did in 1981 for workers’ compensation insurance.

Unemployment Insurance

In Michigan, unemployment insurance rates are determined by past experience. A firm with few layoffs pays very low unemployment rates, while a firm with high cyclical employment pay a higher rate. New employers pay a 2.7% rate in the first and second years. For firms with no layoffs, the rate falls to 1.8% and 1.0% in the third and fourth years, respectively. The minimum rate can drop as low as 0.5% for companies with no layoffs after 5 years.

Property Taxes

Property taxes in Michigan are determined at the state and local levels. The taxable value of property is 50% of the current market value. Both real and personal property, except inventory, are subject to taxation. For property located within the City of Muskegon the rates range from 44.8483 to 63.7757 mills (ad valorem, real, personal) depending on the location and school district.

Sales Tax

There is no local sales tax in Michigan. The statewide sales tax rate is 6.0% Exemptions include: electricity and natural gas used in production, air and water pollution abatement equipment, and machinery and equipment used in manufacturing.

City of Muskegon Income Tax Department

For more detailed information about these programs and the City of Muskegon contact the:

Mayor’s Office
231 724-6724 or

The Department of Economic Development
231 724-6702