Tax Policy & Finance

Governor Signs Chamber-Backed Contractor Use Tax Liability Bill

Contractor Use Tax Liability Bill

SB 887 (Brandenburg) was signed into law last week by Governor Snyder to stop forcing contractors to audit their customers Use Tax liabilities. Previously, contractors were liable for Use Tax on owner supplied materials unless the contractor could prove to the Department of Treasury that the contractor’s customer paid Sales Tax on the items the customer supplied the contractor. This forced contractors into uncomfortable situations and, in some cases, when Sales Tax was never owed or when the contractor’s customer did not have adequate tax documentation, it created a significant a

Overpay Sales/Use Tax? Governor Snyder Signs Legislation Allowing You to Claim a Refund

Michigan Department of Treasury building

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.

This Week's Fad Tax of the Week: Strip Clubs

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.  

You Don't Have to Be a CPA to Understand a Company's Financial Health

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

Key Tax Bills on the Move

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.