Tax Policy & Finance

Chamber-Led Initiative to Exempt Dental Prosthetics from Sales/Use Tax Sent to Governor

After an unexpectedly longer and more complicated journey through the State Legislature, a four-bill package (HB 5173, HB 5164, SB 566 and SB 567) to  re-exempt” dental prosthetics from sales/use tax was sent to the Governor last week for final approval. The Governor has indicated he will sign the bills.

Bills to Address Unfunded Municipal Pension/Benefit Liability Introduced in State Legislature; Chamber Supports Aggressive Action

A 16-bill package aimed at reigning in massive municipal unfunded pension and benefit liabilities was introduced in the both the State House and Senate last week. The Michigan Chamber supports this effort to make sure local governments do everything they can to shore up their liabilities. Failure to handle these massive unfunded liabilities held by local governments could unquestionably fall on Michigan job providers if not dealt with aggressively.

Chamber Hosts Meeting on Installer Sales/Use Tax Liability

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.

Chamber-Supported Tax Bills On the Move

Several Chamber-backed tax bills have advanced through the legislative process in recent weeks. Following is a rundown is key tax bills on the move:

Dental Prosthetics (SBs 566-7 and HBs 5164, 5173): Originally only a two-bill package, legislation to “re-exempt” dental prosthetics has expanded to a four-bill package after requests from the Department of Treasury. Two bills have been passed by the House and await committee action in the Senate. The other two bills are on the House floor where their next stop will be the Governor’s desk.

Proposed Excise Tax on Water Bottlers Could Open Door to Water Rights Battles; Chamber Strongly Opposed

Last week, legislation was introduced that would impose a 5-cent-per-gallon excise tax on water bottlers. Not only would such a tax increase the cost of doing business in Michigan, it would also turn longstanding property rights policy on its head.  

Chamber-Backed Tax Bills On the Move

Several pieces of tax policy have been moving through the legislative process. Following is a brief rundown of Chamber-supported tax bills that are currently on the move: 

Food Tax Preemption – Legislation (House Bill 4999 which makes it clear that local units of government cannot adopt local taxes on food or beverages got the final stamp of approval by the Legislature last week and is now on the Governor’s desk awaiting his signature.