2007 House Bill 4368

Impose 2 percent service tax

Introduced in the House

March 1, 2007

Introduced by Rep. George Cushingberry (D-8)

To impose a 2 percent tax on services, except for health care and education. The new tax would take approximately $1.5 billion annually, one third of which would go into the school aid fund. Business-to-business services would also be taxes, meaning approximately two-thirds of the tax would fall on businesses. This tax was proposed by Gov. Jennifer Granholm as part of her annual budget recommendation.

Referred to the Committee on Tax Policy