The primary responsibility of the Department of Treasury is to promote and enforce tax compliance. Taxes owed should be paid -- nothing more, nothing less. Unfortunately, there are situations where taxpayers who overpay their taxes are not able to get a refund on the overage. That is unacceptable and the Michigan Chamber is fighting back!
Tax Policy & Finance
With unanimous support in the State Senate and more than the 2/3 support needed in the State House, the State Legislature last week voted to override the Governor’s veto of two bills (SB 94 and SB 95) that speed up a phase in of a previously passed law that lowers the sales tax liability of consumers who trade in th
Chamber-backed legislation to provide fairer deadlines for filing Personal Property Tax exemption forms was sent to the Governor last week. This is great news for filers who currently have no recourse if they fail to meet the February 20th deadline for submitting eligible manufacturing personal property (EMPP) tax exemption claims. The Governor is expected to sign the legislation.
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.
The Michigan Chamber of Commerce today applauded legislative action to establish a tax dispute resolution program that will allow Michigan taxpayers to work directly and more effectively with the Michigan Department of Treasury to resolve tax matters.
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.
Collecting, calculating, reporting and paying sales tax can be a confusing aspect of running a business. Many will have to pay sales and use tax to their state, but some businesses can quality for an exemption. Here is a list of organizations and other groups that qualify for a sales and use tax exemption in Michigan.
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.
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.
We are pleased to report that Gov. Snyder has signed House Bill 4999 (Verheulen, R-Walker), which will ensure no local unit of government in Michigan can enact a tax on food or beverages. The Michigan Chamber played a key role in advancing this legislation, from introduction to final passage in only one month's time.