Key Tax Bills on the Move

May 14, 2018

Several Chamber-backed tax bills advanced through the legislative process last week. Following is a brief rundown on bills the Michigan Chamber is fighting for on behalf of Chamber members:

Refunds on Sales/Use Tax Overpayments: HB 5620-1 was supported unanimously in the Senate Finance Committee last week. These bills will allow a purchaser to claim a refund directly from the Department of Treasury for an overpayment of Sales/Use Tax. Currently, a purchaser must go to the seller and request the seller get a refund from the Department on the purchaser’s behalf. HB 5260-1 takes the seller out of the process to attain a refund. The bills are now on the Senate floor where a vote is imminent. The bills will then go the Governor for signature.

Contractor Liability: SB 887 passed the House Tax Policy Committee unanimously last week. This legislation will prevent contractors from essentially having to audit their customers to see if Sales Tax was paid on material provided to them from another party. It will also prevent Treasury from double taxing materials and assessing Use Tax on contractors only providing installation services for “owner supplied material."  The full House should vote on the bill soon.

Rented Heavy Equipment Property Tax Exemption: SB 927 moved out of the Senate Finance Committee last week and will exempt certain rental equipment from personal property taxes. The bill, taking its first step in the process, was supported by both Republican and Democrat committee members.

Transfer Tax Refund Clean-up Bill: HB 4643, legislation to clean-up the process for getting a refund of State Real Estate Transfer Tax (SRETT), passed the Senate Finance Committee. This bill puts in place a mechanism to file a refund for SRETT paid when an owner took a loss on the sale of their home.

For questions on these or any other tax related issue please contact Dan Papineau