Michigan Considering Sales Tax On Services (Again)

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On October 20, 2009, Michigan House Representative Mark Meadows introduced a package of bills to extend the Michigan sales tax to services (once again) in exchange for repealing the Michigan Business Tax Surcharge; see HB 5527, 5528, and 5529.

You may recall back in 2007, Michigan attempted to enact a sales tax on services but decided to replace the sales tax on services with a Surcharge (hmmm; are we going in circles?); see 2007, 21st Century Taxation Blog, and Detroit News.com.

Now in 2009, the current bills may have some support from the business community. For example, Business Leaders for Michigan has proposed Michigan tax reform which includes expanding the sales tax base to services.

What do you think will happen?

Would you prefer a sales tax on services to the current Michigan Business Tax Surcharge?

Stay tuned.


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