MACPA Endorses Passage of Service Tax Repeal
House Bill 5408, passed by the House of Representatives last week and currently awaiting Senate consideration, seeks to repeal the expanded Michigan Use Tax to include services and proposes an amendment to the Michigan Business Tax that would fill the revenue deficiency left by the repeal. This would be accomplished through a 32.9% surcharge of on MBT filers for the 2008 tax year. The surcharge would then be reduced to 27.3% for the 2009 tax year. (The proposed cap is $2 million.)
The MACPA Executive Committee, Legislative Advisory Group and state & local tax experts have decided that it is important for the Association to support this repeal effort, as well as the proposed revenue replacement. Keyperson volunteers have been mobilized at the Grassroots level to communicate the Association's position through direct contact with members of the State Legislature.
For additional detail regarding the House Bill 5408, please review the House Fiscal Agency's Legislative Analysis.
