Bills keep costs lower for consumers, offer sales tax clarity for businesses
House Tax Policy Committee Chair Matt Hall today outlined recent House approval of another key committee priority for the current legislative term – exempting delivery and installation from sales tax.
Recent testimony before the House Tax Policy Committee from small-business owners and certified public accountants revealed the department has been auditing retailers and detailing the need to collect and remit sales and use taxes on services for delivery and installation. Both groups testified that they had not received instruction on collecting and remitting until they were being audited.
The bipartisan plans – passed through the House on Tuesday – protect against sales tax being charged for services, work to correct a policy shift from Gov. Gretchen Whitmer’s administration and shore up the intent of existing law.
“Many small businesses have had inconsistent and vague direction on this issue from the Department of Treasury,” said Hall, of Marshall. “Now we have heard they are being saddled with burdensome audits. This is creating a lot of uncertainty for our local businesses and costing them time and money.”
Hall outlined inconsistencies in a Department of Treasury notice from 2015 attempting to clarify some of the issues certain retailers were having regarding when sales and use taxes applied on delivery and installation. For instance, a tax on furniture delivery and installation could be applied at the time of the sale of the furniture. But if a buyer who did not opt for either delivery or installation at the time of the sale called back just days after and wanted both, a tax would not apply.
“These are common-sense updates that offer clarity – sales tax should not be charged for these types of services,” Hall said. “COVID-19 and executive orders in response have created a lot of hardship for our local job providers. We should be working to improve our laws where we can so they don’t face additional hardship in the form of taxes on services and costs to resolve audits.”
The bipartisan legislation includes House Bills 5080, sponsored by state Rep. Pat Outman, of Six Lakes, and 5081, sponsored by state Rep. Kevin Coleman, of Westland. The plans now advance to the Senate for further consideration.
Rep. Hall talks about his new HB 5601 that establishes a research and development tax credit for semiconductors, advanced automotive projects such as electric battery technology, and life sciences. Rep. Hall says the plan will move Michigan forward with production and jobs while helping to address shortages that have stifled industries throughout the country.
Proposal positions state as leader to produce cutting edge technology A new plan from state Rep. Matt Hall will move Michigan forward with production and jobs while helping to address shortages that have stifled industries throughout the country. House Bill 5601 establishes a research and development tax credit for semiconductors, advanced automotive projects such as […]
State Rep. Matt Hall, of Marshall, today announced that long-time WBCK radio personality Tim Culver has joined his office. Culver, who used the name Tim Collins on radio, previously was the host of the WBCK Morning Show on the Battle Creek-area news/talk and community radio station. He retired from the radio station in late October […]