RELEASE|March 16, 2023 Contact:Mike Harris
State Rep. Mike Harris and the Michigan House of Representatives on Thursday approved plans to clarify Michigan’s tax laws and provide relief to small businesses.
Harris, R-Waterford, noted that the Michigan Department of Treasury has audited small businesses and tried to use vague laws to collect sales and use taxes that the businesses shouldn’t owe, entangling them in a complex appeal process. The House passed two packages of legislation to clarify that Michigan’s sales and use taxes do not apply to certain delivery and installation services and industrial processing equipment.
“Michigan small businesses work hard to follow the law and pay their taxes, but our state Treasury Department has taken these businesses to the woodshed over taxes that they shouldn’t have to pay,” Harris said. “This heaps unreasonable costs on local business owners and their customers. I voted to make Michigan laws clear and straightforward — protecting local business owners from unfair taxation and legal red tape.”
House Bills 4039, 4137, and 4253 will clarify Michigan law and exempt delivery and installation services from sales and use taxes if the charges are listed separately from the product on an invoice. HBs 4054 and 4055 will also clarify that sales and use taxes do not apply to industrial processing equipment used on aggregate materials, such as sand, gravel, crushed stone, and recycled asphalt. Both legislative packages require Treasury to drop pending action against these businesses.