Introduced
by
To reduce to 3 percent beginning in 2011 the new 6 percent tax on many personal and business services (<a href="http://www.michiganvotes.org/2007-HB-5198">House Bill 5198</a> passed to avoid spending cuts in the Fiscal Year 2007-2008 budget. The service tax is expected to levy some $750 million in new taxes annually, two-thirds of which is imposed on business-to-business services.
Referred to the Committee on Finance
Substitute offered
To replace the previous version of the bill with one that would move the effective date of the new <a href="http://www.michiganvotes.org/2007-HB-5198">service tax</a> to Dec. 20, 2007, and is tie-barred to Senate Bill 838, meaning this bill cannot become law unless that one does also. SB 838 would.
The substitute passed by voice vote
Passed in the Senate 22 to 14 (details)
To move back the effective date of the new <a href="http://www.michiganvotes.org/2007-HB-5198">service tax</a> from Dec. 1 to Dec. 20, 2007. The bill is tie-barred to Senate Bill 838, meaning this bill cannot become law unless that one does also. SB 838 would repeal the tax.
Referred to the Committee on Tax Policy
Reported without amendment
With the recommendation that the substitute (H-2) be adopted and that the bill then pass.
Substitute offered
by
To replace the previous version of the bill with one that instead provides amnesty for any businesses that did not collect the tax in the 16 hours it was in effect before repeal by the legislture.
The substitute passed by voice vote
Amendment offered
by
To also allow a business to just return to the buyer any of the repealed tax it collected.
The amendment passed by voice vote
Passed in the House 106 to 0 (details)
To provide “amnesty” for any business that did not collect the <a href="http://www.michiganvotes.org/2007-HB-5198">6 percent tax on many services</a> that the legislature passed on Oct. 1, 2007 and repealed on Dec. 1, 2007 - 18 hours after it went into effect. Also, to establish that firms that did collect the tax should refund it to the buyer, or remit the proceeds to the Department of Treasury, where the person or business who paid the tax can apply for a refund.
Passed in the Senate 38 to 0 (details)
