HB 5620 and HB 5621 were signed by the Governor last week and will allow purchasers to claim a refund for sales/use tax overpayments directly to the Department of Treasury. Currently, the process to get a refund for an overpayment of sales/use taxes is cumbersome and inefficient. It involves unrelated parties and is overly burdensome. HB 5620 and HB 5621 allow for a streamlined process that will make it easier to get a refund that is rightfully owed to a taxpayer.
Tax Policy & Finance
Recently introducted Senate Bill 1031 (Proos) was passed last week by the Senate Finance Committee on a party line vote to eliminate personal property taxes on all utility personal property that was put online after December 31, 2017.
Legislation has been introduced that targets a new industry: Adult entertainment. House Bill 5978 would impose a $3 per patron excise tax on strip clubs. Two weeks ago, it was bicycle shops.
Some politicians just can't tax enough and continue to inflate government. The Michigan Chamber will continue to fight against these efforts on behalf of Chamber members.
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:
The Michigan Chamber is prepared to fight a bill introduced last week that would impose a $2.00 per transaction tax on mobility devices, like bicycles, mopeds, electric bicycles, and any other street device that isn't a car.
We are pleased to report that, thanks to passage of House Bill 5261 last week, businesses with less than $80,000 in personal property that qualify for the small parcel personal property tax exemption will no longer have to file annually to receive the exemption.
Good news! Chamber-backed legislation to prevent Treasury from assessing contractors use tax on items provided to them by their customer for installation services only was unanimously approved by the State Senate last week.
If you want to find out the financial health of a company - or even your own - there are two good ways to do it. To get started, gather financial statements (including balance sheet, income statement and a statement of cash flow) for the last five years of the company you want to review. Once in hand, you can utilize two key ratios to spot trends that will tell you how that company is doing financially compared to others.
#1: Assets vs. Debt
Several Chamber-backed tax bills advanced through the legislative process last week. These bills include:
Halt Mandatory Customer Audits by Contractors (SB 887) - Legislation introduced to stop contractors from having to audit their customers passed the Senate committee unanimously after testimony that got heated at times. SB 887 will stop the practice of contractors having to prove to Treasury someone else paid Sales Tax on items they installed to get out of Use Tax assessments.
Legislation to bring corporate officer liability for LLP’s into line with that of LLC’s was introduced and passed out of the Senate and House committee unanimously last week. Senate Bill 841 (Brandenburg) awaits a vote in the full House where it will then be sent to the Governor. The bill would ensure that members of a partnership would not be held personally liable for debt, obligation, or other liability incurred by the partnership.
For more information, contact Dan Papineau at firstname.lastname@example.org.