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 [2], 5528 [3], and 5529 [4].
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 [5], 21st Century Taxation Blog [6], and Detroit News.com. [7]
Now in 2009, the current bills may have some support from the business community. For example, Business Leaders for Michigan [8]has proposed Michigan tax reform [9]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.
Links:
[1] http://www.accountingweb.com/blogs/accountingweb/state-and-local-360
[2] http://www.legislature.mi.gov/documents/2009-2010/billintroduced/House/pdf/2009-HIB-5527.pdf
[3] http://www.legislature.mi.gov/documents/2009-2010/billintroduced/House/pdf/2009-HIB-5528.pdf
[4] http://www.legislature.mi.gov/documents/2009-2010/billintroduced/House/pdf/2009-HIB-5529.pdf
[5] http://detroit.about.com/od/media/a/servicetax.htm
[6] http://www.newamerica.net/blog/21st-century-taxation/2008/michigan-changes-course-repeals-sales-tax-services-2134
[7] http://www.detnews.com/apps/pbcs.dll/article?AID=/20071108/POLITICS/711080370#
[8] http://www.businessleadersformichigan.com/
[9] http://www.businessleadersformichigan.com/research-and-reports