As noted in previous editions of Capitol Report, we have seen a significant increase in issues regarding sales/use tax liability on installers or contractors. Under audit, Treasury has been assessing use tax on companies who are only installing items for which the sales tax burden is born by someone else. When able to prove that sales tax was already paid, the liability is absolved, but doing so is complicated.
The Michigan Chamber convened an informational session on this issue last week and hosted more than 15 interested parties in person and about 15 more over the phone. After nearly two hours of discussion and thoroughly flushing out what has become a growing problem for several sectors, the Michigan Chamber is on track to submit a proposal to the Legislature to bring more clarity and fairness to this issue.
A special thanks to all the volunteers who participated in our session. This effort is a classic example of how the Michigan Chamber can bring people together to identify problems, craft solutions and execute an action plan for the betterment of all Michigan businesses.
For more information, please contact Dan Papineau at email@example.com