Advocacy News – March 24, 2023
The Michigan Legislature took action this week on a handful of items that can be helpful to our state’s job providers – from advancing tax fairness on delivery and installation services and tackling a barrier to employment – affordable housing – to making carryout cocktails permanently allowable. Check out the MI Chamber’s quick round-up and how these changes may benefit your business.
Tax Policy:
A long-standing priority for the Michigan Chamber and our internal Tax Policy and Economic Competitiveness committee is to ensure fairness in the state’s tax policy code and provide relief to the backbone of Michigan’s economy – our state businesses. Michigan, and many other states across the country, have exempted services from sales and use tax. The Michigan Chamber of Commerce, our members and many tax preparers across the state agree services such as delivery and installation have never been taxable under statute. However, with an uptick in audits, the Chamber has sought legislative clarification to ensure our members and Michigan businesses are following the law, while also keeping a competitive tax climate here in the state.
House Bills 4039 and 4253 (Outman, Coleman) clarify that delivery and installation services are not subject to the state’s sales and use tax. These bills that the Michigan Chamber has helped lead the negotiation on, are on their way to the Governor’s desk after passing both chambers of the legislature. However, the timing of an agreed upon signature is now unknown as a needed trailer bill, Senate Bill 160, was not considered on the House floor this week. The Michigan Chamber is hopeful that we see a signature after the legislative spring break.
Affordable Housing:
The Michigan Chamber, a member of the Michigan Housing Coalition, advocated for a collection of bills, Senate Bills 129-132 (Singh, MacDonald Rivet, Cavanagh, Shink), that amend the Brownfield Redevelopment Financing Act to include housing development activities. In Michigan, a brownfield site is considered a formerly developed site that has significant barriers to redevelopment and are subject to tax increment financing (TIF) options to mitigate a high initial price tag for a project. Under the package, certain housing development activities would also be subject to the same relief. This package received bipartisan support in the Michigan Senate (25-13) and was sent to the Michigan House for further consideration.
Changes to Liquor Sales:
In the Michigan House, the Committee on Regulatory Reform, passed House Bill 4201 (Grant), supported by the Michigan Chamber, and sent the legislation to the House floor for consideration. Currently in Michigan, carryout sales and delivery of alcoholic beverages from a licensed entity is on track to sunset in the year 2026. House Bill 4201 would eliminate the sunset and allow this practice to continue indefinitely.
For questions or more information, please contact Leah Robinson at lrobinson@michamber.com.