December 1st - Service Tax Expansion Eliminated
4:45 pm December 1st: As expected, the House of Representatives convened a special session this afternoon to pass House Bill 5408, legislation encompassing the agreement reached last night to eliminate and replace the expanded Michigan Use Tax.
After roughly an hour of caucus meetings, the House, on a 66 to 42 vote, passed the legislation – now on its way to the Governor’s desk. The deal levies a 21.99 percent surcharge on MBT liability, with a $6 million cap in total exposure and a 2017 sunset depending on personal income growth.
The House also addressed Senate Bill 845, legislation designed to provide amnesty to taxpayers that may have collected the Use Tax during the roughly 17 hours it was in effect.