Sales Tax Articles
Sales Tax State Activity Update - January 2008
Move Over Use Tax – Michigan Enacts Business Tax Surcharge
Governor Jennifer M. Granholm signed HB 5408 into law (PA 145 of 2007) on December 1, 2007.
The law creates a business tax surcharge that replaces a service tax enacted as part of a compromise budget solution earlier in the year. The extension of the Use Tax to select services was repealed on December 1st, just hours after it went into effect.
Businesses that charged and collected the Use Tax on services, before the law was repealed on December 1st, can either refund that money to the purchaser/user of the service or remit the revenue to the State of Michigan, when the first Use Tax payment is due. For many businesses, that payment is scheduled to be remitted by January 20, 2008.
Part of the deal to repeal the Use Tax on select services includes an agreement to pass legislation that will hold businesses harmless if they didn't collect the use tax on Saturday, December 1.
The posting may be viewed on the Michigan Official State Portal.
(Michigan Department of Treasury, Web Site Posting 12/03/07)
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