The Michigan House of Representatives on Thursday approved a plan spearheaded by state Rep. Mark Tisdel to clarify Michigan’s tax laws and provide relief to small businesses.
Tisdel, who serves on the House Tax Policy Committee, noted that the Michigan Department of Treasury has audited small businesses and tried to use vague laws to collect sales and use taxes that the businesses shouldn’t owe, entangling them in a complex appeal process. The House passed two packages of legislation to clarify that Michigan’s sales and use taxes do not apply to certain delivery and installation services and industrial processing equipment.
“Michigan tax collectors have exploited a vague tax code to burden small businesses with unfair taxes and legal hurdles,” said Tisdel, R-Rochester Hills. “These costs not only hurt our local business owners, but they also create higher prices for customers. Our plan will provide business owners clarity and offer much-needed savings to the people of Michigan.”
House Bills 4039, 4137, and 4253 will clarify Michigan law and exempt delivery and installation services from sales and use taxes if the charges are listed separately from the product on an invoice. HBs 4054 and 4055 will also clarify that sales and use taxes do not apply to industrial processing equipment used on aggregate materials, such as sand, gravel, crushed stone, and recycled asphalt. Both legislative packages require Treasury to drop pending action against these businesses.
Tisdel played a key leadership role introducing the tax reform legislation and advancing it through the Tax Policy Committee. HB 4253 is patterned after HB 4040, which Tisdel sponsored.
“I proudly worked across the aisle to reduce the tax burden on Michigan small businesses that deliver or install appliances, furniture, and other goods to Michiganders,” said Tisdel, who serves on the House Tax Policy Committee.
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